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Epistar Continues MOCVD Expansion While GPI and Forepi Remain Conservative

Jun 17th 2015 at 12:26 AM

ReneSola 260W Polycrystalline Solar Panels,China

Chinese LED chip manufacturers are conservative towards expansion, according to the Commercial Times. Forepi and Genesis Photonics Inc. (GPI) have temporarily stopped introducing new MOCVD units for 2014 and are aiming to increase efficiency instead. However, Taiwanese manufacturer Epistar has continued to increase MOCVD units to meet lighting client demands, due to insufficient production during peak season.  Different parties are optimistic about LED supply and demand this year. Although there is still overcapacity for blue (InGaN?) LEDs, supply continues to fall short of demand for high grade blue LEDs.



Even if demand is increased, Forepi and GPI have already decided not to add additional MOCVD units, but instead increase efficiency and yield to increase production capacity. Forepi currently has a total of 103 MOCVD units, around 66 of which are in their China factory. The company's Longtan factory began mass production last year, the factory's monthly production of 2 in. substrate increased from 250,000 to 320,000 pieces, an increase of 28 percent. The company's revenue is estimated to grow 30 percent this year.  GPI currently has around 70 MOCVD units with a production capacity of approximately 200,000 pieces, 80 percent of which produce blue light.



The company anticipates boosting production 5 to 10 percent through increasing efficiency and raising blue LED luminosity 10 percent gradually each year. The company has decided not to focus on expansions, but instead on technology advancements to differentiate itself from competitors. Epistar has over 300 MOCVD units in China and Taiwan factories, and has the world's second highest production capacity.



The company was also the first die manufacturer to introduce domestic flip chip production in Taiwan. Even with production capacity being insufficient during the peak season, utilization rates still reached 70 percent during slack season. The company will therefore continue expansion this year. After 2015, Epistar plans to increase MOCVD units to over 100 in mainland China giving the company the largest production capacity among Taiwanese manufacturers.

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