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.