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Nan Ya Photonics will focus on LED lighting, exits EPI-wafer market

Nan Ya Photonics will focus on LED lighting, exits EPI-wafer market

By BizLED Bureau

Mar 5, 2016: Nan Ya Photonics Incorporation (NYPI), a subsidiary of Formosa Plastics Group, will be making an exit from the LED EPI-wafer manufacturing business. Markets demands are getting lower, prices getting competitive and there is an oversupply of LED chips in LED industry. The company has plans to focus on downstream market, including light bulb production and lighting system.

With Chinese government’s order of recent LED subsidies, there has been a sudden surge to EPI-wafer production capacity and caused the product oversupply. Due to this, the company has reported losses of more than US$ 304,650 in 2014. Due to this, NYPI and Epistar decided to shut down the EPI-wafer manufacturing business as this will be the only solution to put a halt to losses. In future, the company is planning to transfer 10 to 13 equipment to Epistar in the near future.

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Currently, NYPI’ vertical integrated production capacity comprising of LED EPI-wafers, LED packages and LED chips. NYPI was a wholly-owned subsidiary, before forming a partnership with Taiwanese LED chip manufacturer Epistar. Epistar and Formosa Plastics Group each hold 50% of stake in NYPI.NYPI Chairman Wilfred Wang commented on the matter that stating on the oversupply situation in China and its impact on the LED industry last year has led to this situation. He further added that the LED industry is moving towards a negative side with wave of bankruptcies projected in the near future. The decision to exit the market came shortly after the announcement was made.

NYPI Chairman Wilfred Wang commented on the matter that stating on the oversupply situation in China and its impact on the LED industry last year has led to this situation. He further added that the LED industry is moving towards a negative side with wave of bankruptcies projected in the near future. The decision to exit the market came shortly after the announcement was made.

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However, Formosa Plastics Group stressed that the company will not move away from its green energy technology investment as the shift from upstream to downstream market is sheer adjustment for improved operation. The company has not decided to layoff the existing employee strength and replace with other workforce.

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