Mark Telford (Email)
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Semiconductor Today Magazine


12 June 2006


Taiwan’s LED manufacturers on the move

DigiTimes’ website (http://www.digitimes.com) today reported a number of interesting developments in Taiwan’s LED manufacturing community.

According to the site, Unity Opto Technology (UOT) is working with backlight unit (BLU) and TV makers to develop LED backlighting for use in large-size TVs. UOT’s chairman, CH Wu is quoted as saying that the company had received overseas orders from TV makers. The company is also said to be working with Kye Systems to develop notebook-use touch pads and LED backlights with sensors that can adjust the brightness of a notebook panel automatically.

LED manufacturer, South Epitaxy is reported as expecting to turn a profit in Q3, 2006 on a monthly basis as a result of equipment reallocation, while its utilization rates and yields have risen to 80% and 70%, respectively. According to DigiTimes, South Epitaxy’s monthly losses averaged about NT$100m (about US$3m) in Q1, 2006, but the amount of losses started to fall in Q2, 2006, with gross margins also approaching a positive figure in May. Q1/2006 revenues reached NT$493m, giving the company a year-on-year increase of 154.5% over Q1/2005.

DigiTimes also reported (based on a report in the Apple Daily) that Arima Optoelectronics would announce a merger with LED manufacturer Luxxon Technology around the end of June, 2006. According to the report, Arima Optoelectronics' president, PJ Wang, declined to comment on the merger. However, Wang felt that the industry would see more consolidation and that Arima would target small-size LED manufacturers in Northern Taiwan for merger.

Visit DigiTimes: http://www.digitimes.com

Visit UnityOpto Technology: http://www.unityopto.com.tw

Visit Arima: http://www.arimacomm.com.tw