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SDK to increase LED production capacity

Posted: 08 Dec 2006     Print Version  Bookmark and Share

Keywords:LED  ultra bright LED  red/yellow LED  Showa Denko K.K.  SDK 

Showa Denko K.K. (SDK) has decided to increase its capacity for producing aluminium-gallium-indium-phosphide (AlGaInP) ultra bright LED chips to meet growing demand for use in LCD backlighting and automotive parts.

The production capacity will increase from three crore units a month at present to 10 crore units a month. Expansion work will start in February 2007 for completion in the third quarter of the same year, SDK said.

According to the press release, the company will invest approximately Rs.59.18 crore ($13 million) in the project, centring on expansions of a metal organic chemical vapor deposition furnace for the production of epitaxial wafers, chip-making facilities and the clean room.

While AlGaInP ultra bright LED chips are now mainly used in displays, automotive parts and traffic lights, development is under way for such new applications as LCD backlighting and light source for sensors. Thus, demand for AlGaInP ultra bright LED is expected to grow at an annual rate of around 40 per cent in the coming five years.

SDK said that its AlGaInP ultra bright LED chips, which are based on proprietary technologies, produce diverse colours, such as red, yellow, and orange. The company aims to expand its ultra bright LED business as a new "growth-driver" business, by developing still brighter LED chips. The company expects to meet a rapidly growing demand for LEDs for LCD backlighting and automotive parts applications. In addition, SDK will accelerate the development of AlGaInP ultra bright LED chips for general lighting, a new promising application to be commercialized in the future.

The company is planning to sell over Rs.77.38 crore ($17 million) of this product line in 2007 and double the sales in 2008.

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