It’s reported that LED chipmaker Epistar Corp. has landed hefty contracts to build the chips for Samsung and begun shipping the chips last month.
It’s disclosed that Samsung needs the chips for backlight modules used in its LCD TVs. Although Epistar, Taiwan’s No.1 LED epitaxy-wafer and chip maker, has won orders to make built-to-order chips for three to four heavyweight LED-lamp makers including Osram and Toyoda Gosei, Samsung’s order will particularly give a big boost to the company.
Some industry watchers assume an LCD TV uses around 1,000 LED lamps as backlight and estimate Samsung to ship around 250 million LCD TVs next year. Based on the estimate, the South Korean electronics giant will need at least 125 million LEDs to make its modules if LED-type TVs will account for only 0.5% of its 2009 shipments.
It’s said that Samsung approached Epistar on ground that its LED chip-making affiliate, Samsung Electromechanics is stretching its capacity. Epistar has declined to comment on the Samsung orders, simply saying the company has received considerable built-to-order contracts for the second half this year and the contracts will account for 10% to 15% of the company’s revenue for last quarter, up from 5-10% of its second-quarter revenue. Company executives said the proportion will remain unchanged into this quarter.
Industry watchers pointed out that Epistar had been aggressively expanding its capacity for make TV-backlight chips by adding new metal organic chemical vapor deposition (MOCVD) machines to its production lines.
