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LED makers wait for more stable market before capacity expansion

Posted: 20 Sep 2006 ?? ?Print Version ?Bookmark and Share

Keywords:LEDs? LED manufacturer? LED maker? Arima Optoelectronics? Epistar?

LED manufacturers recently disclosed they will not immediately expand their capacities until the market situation shows high demand potential within the next 12 months.

According to Arima Optoelectronics Corp., it will not expand its capacity until early next year. Meanwhile, Epistar Corp. says it will wait for a more stable market demand before increasing its production. Epistar says that while handset-use LEDs are quite strong, demand for LEDs used in large-sized applications is still uncertain.

Industry sources say that for end-2006, Epistar, Arima and South Epitaxy Corp. have already scheduled capacity expansions for GaN and AlGaInP chip LEDs. Epistar reportedly will ramp up capacity from 400 million to 450 million units of GaN LEDs per month. Arima is also expected to increase its capacity by 20 percent for AlGaInP chip LEDs and 16.7 percent for GaN chip LEDs. South Epitaxy will likewise double its capacity for AlGaInP LEDs, according to sources.

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