AUO to Venture Into Production of Epitaxy Wafers for LED

Taipei, March 18, 2008 (CENS)--The Taiwan-based AU Optronics Corp. (AUO), the largest supplier of display panels in the world, is to venture into production of epitaxy wafers for LED (light-emitting diode), according to company sources.

AUO plans to turns out epitaxy wafers for use in LED lighting products initially in hopes of accumulating experiences in making LED backlights. In fact, AUO's subsidiary Darfon Electronics Corp. has specialized in the field and already landed orders from Philips, encouraging AUO to penetrate the market. And the firm's new business operations will be led by David Su, the company's original flat-panel division chief.

AUO is to build a new plant to produce epitaxy wafers on the site of Unipac Optoelectronics Corp.'s original L1 plant, which has been dismantled as Hsinchu Science Park (HSC) management didn't approve a deal for the plant between Unipac and Gallant Precision Machining Co., Ltd., a manufacturing equipment producer under AUO Group.

AUO noted that it has planned to set up one trial production line for epitaxy wafers at the new plant initially, and gradually develop its LED business operations without specific schedules.

Industry insiders indicated that after settling its production lines, AUO will move to contact large-sized international companies of LEDs, including Nichia Corp. and OSRAM Opto Semiconductor, for license agreements, to pave the way for mass production in the future. At the moment, AUO has sourced LED chips mainly from Japanese producers to turn out LED-backlit panels for notebook personal computers.

Last year, LED-backlit notebook PCs took up a share of only 3% in the global shipment of notebook PCs; however, the corresponding figure is estimated to sharply surge to 10-15% this year. As demand for LED chips exceeds supply currently, AUO has decided to venture into production of epitaxy wafers for LEDs as part of its efforts to mass produce LED-backlit panels for notebook PCs in 2012.