News

13 October 2010

 

Tyntek to set up China LED-making JV in Fuzhou

Taiwan-based LED chipmaker Tyntek has announced plans to invest 153m yuan (US$4.94m) to set up a LED-making joint venture with the Fuzhou regional government in China, reports Taiwanese publication Digitimes. Total investment will be 353m yuan.

First-phase development will focus on LED epitaxial wafer and chip production, with plans to install 30 MOCVD reactors and to start production in December 2012. The second phase will install LED packaging equipment, with the aim of gaining market share in the backlighting and general lighting markets in China. Tyntek notes that capacity may expand to 100 MOCVD reactors in three and a half years time, depending on the market situation.

Investments by Taiwan LED firms in China totaled about US$240m in 2009 and have risen to US$1.17bn so far in 2010 (up to the end of August) including almost US$1.1bn for upstream LED epiwafer and chip production, according to industry statistics.

Taiwan’s LED industry value in 2009 was about US$2.17bn, accounting for 25% of the global LED industry. By the end of 2009 about half of Taiwan-based LED firms’ investment had shifted to China. Taiwan’s LED industry value is expected to reach US$2.7bn in 2010, with about 60–70% of the investment going into China.

The main reason for Taiwan-based LED players investing in China is the Chinese government’s subsidy of 10m yuan per MOCVD reactor installed (about half of the cost) amid significant market demand, notes the report.

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