Monday, June 14, 2010
In the second of half of 2009, Taiwan companies invested NT$8.5 billion (US$263.37 million) and NT$14 billion on LED epitaxy and LED packaging facilities, respectively, in China, about 70% and 20% of the total investment capital made in the previous 14 years, according to Photonics Industry and Technology Development Association (PIDA).
Taiwan's production value of epitaxy and LED packaging in 2010 is expected to reach NT$41.6 billion and NT$58.6 billion, respectively, up 25% and 20% on year, PIDA projected.
In recent years, the China government has stepped up incentives to attract LED-related investment, especially LED epitaxy production, which has high technological barriers. Prior to 2009, Taiwan companies had never established epitaxy facilities on the mainland.
To take advantage of China's growing market, many Taiwan-based players, whether it is pure play LED companies or LCD panel makers with LED businesses, have aggressively raised funds to expand capacity in China. In the first half of 2010, upstream LED companies including epitaxy producers raised NT$42.2 billion, and downstream companies raised NT$7.5 billion.
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