Formosa Epitaxy to Increase Capacity in First Quarter of 2013

LED firm Formosa Epitaxy of Taiwan plans to install 12-13 sets of MOCVD
equipment before the end of first-quarter 2013, according to a Digitimes article. The
company reportedly expects production to begin in the second quarter. Then in
the second-half 2013, the company plans to increase its monthly capacity at the
firm’s Taiwan plant by 50,000 2-inch epitaxial wafer equivalents. With the new
systems the company’s total capacity for epitaxial wafer equivalents will
increase to 300,000 per month Including the 140,000 unit capacity from its
Taiwan plant, and about 110,000 per month from its facility in Yangzhou,

Formosa indicated that TV backlight orders began to rebound before the Lunar
New Year holidays and demand continues to be strong in March. Currently,
because of the use of LEDs in TV backlight modules and tablet applications,
demand for high-brightness LED chips exceeds capacity. The company says that
its capacity utilization rate was 70% in January, 80% in February, and is
likely to reach 90% in March.