Epistar Purchases Optodisc Factory to Expand AlInGaP and InGaN LED Production

Taiwanese LED chip manufacturer Epistar acquired production facility from Taiwanese blue-ray CD and LaserDisc manufacturer Optodisc factory for NT $836 million, according to Chinese-language Commercial Times. Epistar plans to expand production of AlInGaP and InGaN LEDs at the newly acquired site. Production at the 39,295-square-meter (422,963- square- feet) facility is expected to begin in August 2014. The facility will reportedly increase the company’s AlInGaP LED production capacity by 10 percent during Q3 of 2014.

In 2014, Epistar plans to add 12 MOCVD systems in Taiwan and 30-35 in China to increase LED wafer production capacity. The company expects to move offices and employees from its second and third factories a the end of the year. Rising demand for outdoor LED displays is reportedly the reason for the production capacity expansion. AlInGaP LEDs are also employed in long distance infrared equipment, and automotive applications such as headlamps, signal lights, and brake lights.

Although, AlInGaP LEDs are just 25 percent to 30 percent of Epistar’s revenue, they contribute more than half of the company’s profits. Epistar’s revenues from AlInGaP LED revenues have surpassed those from InGaN LED chips. Epistar expects that the added AlInGaP LED production capacity will boost the company’s profitability. Blue InGaN LEDs combined with a light converter such as a phosphor create white LEDs for general lighting.