Apr 20, 2017: Till the third quarter of 2017, supply of LED chips manufacturerd by China- and Taiwan-based manufacturers will be quite tight until major China manufacturers increase their production capacity.
Due to strong demand for LED lighting and fine pixel pitch displays, China- and Taiwan-based manufacturers are facing challenges in supplying LED chips with their existing production capacity.
As a result of this tight supply, LED device prices have shot up by 10-15% since the end of 2016.
Epistar, the leading Taiwan-based LED chip maker is handling the situation strategically by making selected orders to cope with the tight supply. About 30% of its orders consists of blue-light LED chips.
Epistar expects orders for LED chips for 5mm-thick chip-scale packaging from South Korea and China to increase soon. The company also expects potential growth in demand for infrared LED chips for iris recognition, range finding, VR (virtual reality), AR (augmented reality), smart wearable and surveillance devices.
It is reported that China-based LED chip manufacturers like San’an Optoelectronics, Huaian Aucksun Optoelectronics Technology and HC SemiTek are also set to expand their production capacity by adding 200 MOCVD units, which will come into operation from August 2017.