Tyntek Announces LED Expansion Plan

Taipei, Dec. 29, 2010 (CENS)--Tyntek Corp. yesterday announced its epi-wafer subsidiary, Alpha Plus Epi Inc., will add 10 to 15 metal oxide chemical vapor deposition (MOCVD) chambers in 2011 at a cost of US$30 million in light of excessive demands for light emitting diode (LED) chips.

Alpha Plus is testing seven MOCVD chambers it recently tooled at its factory in Taichung Industrial Park. The subsidiary is estimated to generate revenue of around NT$50 million (US$1.6 million) a month as soon as its production lines come on stream sometime in the first quarter of 2011.

Additional equipment will come on line in the second and third quarters of 2011, boosting the company's revenue by two folds, and more chambers may be installed by the end of 2011 if called for by market demand. The factory is designed to have maximum load capacity of 30 chambers.

Meaanwhile, Tyntek is also speeding up investments in mainland China to secure more epi-wafer production capacity. The company has recently announced cooperation with Fuzhou city government to set up an LED venture in an industrial park in the city at a cost of around RMB353 million (US$53 million at US$1:RMB6.6). The venture is planned to have 30 MOCVD machines to turn out the wafers sometime in the third quarter of 2011 for making chips available for public lighting projects.

An LED packager, Tyntek has recently branched out into the chip-making sector. The company decided to spend NT$1 billion (US$33 million) opening Alpha after failing to reach an agreement with epi-wafer maker Ubilux Corp. over a combination deal. Ubilux is held by DRAM chipmaker PowerChip Semiconductor Corp. (PSC).

With plans to put out blue chip, red chip, green chip and sensor devices on the wafers, Tyntek is competing against Epistar Corp., Formosa Epitaxy Inc., Genesis Photonics Inc. and Tekcore Co. at home.

Tyntek and Its 2010 First Three Quarter Earnings

Fiscal Quarter	Q1	Q2	Q3
Revenue	NT$1.14B	NT$1.6B	NT$1.5B
After Tax Net Income	NT$20M	NT$51M	NT$125M
Earnings Per Share	NT$0.06	NT$0.16	NT$0.37

Sources: the company