Epistar to open Epiwafer factory in mainland China
Epi-wafer maker Epistar Corp. has recently decided to build an US$93.7 million factory in Changzhou of mainland Chinese province of Jiangxu to turn out LED epitaxy wafers to support its customers operating nearby.
Epistar, reportedly the world's No.1 supplier of red LED chips and among the world's top three manufacturers of blue chips with operating 200 MOCVD (metal organic chemical vapor deposition) chambers, will kick off construction of the new plant in the first quarter of 2010, which is slated for official operation in 2011.
The planned factory is designed to create an additional 40% production capacity for Epistar in initial stage of its operation with planned 30 MOCVDs. It is Epistar's first factory in the mainland and the biggest epi-wafer factory in Changzhou.
The factory will be built in an export processing zone of the city to stay close to many of its prime customers including LED packagers Everlight Electronics Co., Ltd., and Lite-On Optoelectronics Inc.
The Changzhou government will subsidize the epi-wafer project by offering 10 million Chinese yuan (US$1.4 million) for each MOCVD.
Also, Epistar will invest US$8 million in a United Microelectronics Corp.-owned (UMC-owned) LED factory in Shandong Province for a 50% stake.
Epistar sets a revenue goal of NT$18 billion (US$562 million) for 2010, a 40% increase from 2009.
