It’s reported that Neo-Neon Holdings, one of the world's largest decorative lighting companies, plans to enter the LED chip-making sector, making it more vertically integrated. The company already has its own LED packaging capabilities and manufactures a wide range of LED lighting products.
Neo-Neon has reportedly spent US$30 million on equipment for a chip-making facility in Guangdong, China, including more than 10 MOCVD growth systems. The company plans to save 40-50% in production costs for its LED product line. The plant will have a monthly capacity of 12,500 wafers, or around 400 million chips. However, this will be far lower than Neo-Neon's total demand for LEDs, and the company will still have to source LED chips from outside.
