Opto Tech extends cooperation with Nichia

Opto Tech will manufacture more LED chips under license from Nichia, and will also sell more Nichia-branded chips to packagers.

Nichia Corp. and Opto Tech Corp. will expand their cooperation on LED manufacturing, according to an article on the Taiwan Economic News website.

Japanese LED maker Nichia will increase the supply of its LED chips to Opto Tech, a Taiwan-based LED supplier. Opto Tech has committed to manufacturing more Nichia-branded chips on a contract basis and selling more Nichia-branded chips to packagers.

Opto Tech expects its annual revenue from sales of Nichia chips to double to NT$1 billion (about US$29.6 million) this year, which will represent around 20% of its total sales revenue.

Nichia manufactured all its own LED chips until establishing a deal with Opto Tech in August 2004 that outsourced some of the production.

This deal with a Taiwanese manufacturer should enable Nichia to compete more effectively with other Taiwanese companies at the low-priced end of the LED market.

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