Manufacturer of LED epitaxial chips and wafers, Formosa Epitaxy is expected to ink an agreement with a China-based retail chain and sales agent of LED lighting solutions.
The agreement was arranged by Mitsui, a Japan-based firm to tap the Chinese market. Mitsui had obtained 15% stake of Formosa Epitaxy via private placement. This enabled the firm to become the biggest investor in Formosa Epitaxy.
Formosa Epitaxy’s Chairman, Frank Chien stated that the company’s subsidiary, located in the eastern part of China, has started shipping LED chips for manufacturing LED lighting solutions. The subsidiary has deployed 25 MOCVD (metal organic chemical vapor deposition) systems, out of which 18 are currently operational. Chien added that the subsidiary would deploy additional 12 MOCVD systems by June 2011. He also mentioned that the company has also started a factory in the northern region of Taiwan. The facility will add MOCVD solutions in the fourth quarter of 2011.
The subsidiary will utilize a large part of its capacity to provide LED chips to LG Display to manufacture TV panels. LG Display will use the LED chips to manufacture TV panels. The subsidiary also provides LED chips for vendors such as Changhong, Konka, Skyworth, and TCL.