LED manufacturers increase production capacity
With its recent announcement that it will make huge investments in its production capacity, Cree has become the latest in a list of rival LED manufacturers that plan to expand.
US LED manufacturer Cree recently unveiled its plans to spend $300 million on facilities and equipment, including up to $120 million to in crease its LED production capacity (see Cree's five-year expansion plan calls for $300 million investment).
The announcement is the latest in a series that has seen Nichia, Toyoda Gosei and Lumileds, among others, allocate substantial funds to boost their respective production capacities.
Toyoda Gosei, the Japanese manufacturer of GaN-based LEDs, plans to invest $140 million to establish a facility in Takeo City, Saga Prefecture, Japan, that will serve as the company's second production base. Construction on the new facility began in April 2004, and LED production is scheduled to commence in May 2005.
* See Toyoda Gosei builds second GaN LED factory
At the end of May 2004, a report in the Japanese newspaper Nihon Keizai Shimbun said that Nichia aims to double its LED production capacity at its Tatsumi manufacturing site in Japan. The company believes by increasing production it can be more competitive, and increase its share of lower-end markets, such as LEDs for illuminating cell-phone keypads. The company will construct a six-storey building, costing ¥4 billion ($360 million), and install manufacturing equipment worth ¥20-30 billion, said the newspaper.
Two leading Taiwanese LED manufacturers, Arima Optoelectronics and Tyntek, are increasing their output of AlGaInP LEDs in order to challenge UEC and Epistar.
* See Arima and Tyntek increase LED production
In May 2004, high-power LED manufacturer Lumileds announced that it had opened a new facility in Malaysia, with three times the capacity of its Penang factory.
* See Lumileds opens LED factory in Malaysia