19 April 2010


Jiangsu Canyang aims to be top-5 LED chipmaker in 3-5 years

China’s Jiangsu Canyang Corp, an affiliate of Taiwan-based LED chipmaker Formosa Epitaxy (FOREPI), aims to become a global top-five LED chipmaker in 3-5 years, according a report in Digitimes.

Jiangsu Canyang is scheduled to start production in July and plans to install 25 MOCVD reactors in 2010 and 25 more in 2011.

Monthly capacity is targeted to be 80 million LEDs by the end of 2010 and 125 million in first-quarter 2011, says FOREPI’s chairman Chien Fen-Ren.

Chien comments that FOREPI is optimistic about China’s LED lighting market and, in order to be close to its customers, it decided to establish an LED manufacturing joint venture with its downstream customers.

FOREPI is the largest shareholder in Jiangsu Canyang, with a 40% stake. Taiwan-based LCD TV maker Amtran Technology and Korea-based LCD panel maker LG Display (LGD) each has a 15% stake, while Taiwan-based LED packaging house Unity Opto Technology has about 10%.

Jiangsu Canyang has initial paid-in capital of US$60m, and this should rise to US$120m in second-half 2010, says Chien.

Chien expects the current shortage of LEDs to continue until the end of 2010, as chipmakers have been able to meet less than half of the orders. Demand for LEDs - excluding double ordering - is about double the LED chipmaking sector’s total capacity currently, he adds.

Jiangsu Canyang’s capacity has already been fully booked by clients, and the firm expects to make a profit in 2010 on revenue of NT$400-500m (US$12.72-15.9m), Chien says.

See related items:

Epistar and Formosa Epitaxy hit new highs

LED shortage looms in 2010

FOREPI considers 4” wafer capability as it ramps capacity with order for ten Aixtron MOCVD systems

HB-LEDs to drive doubling of MOCVD sales to 415 systems in 2011