AOC and LED jointly built factory EPISTAR both sides were not in denial

Global LCD manufacturing leading factory of AOC recently launched Taiwan factory and strengthen strategic alliances, consolidate the supply chain, following the cooperation with AUO, recently the market spread, AOC for the control of LED and LED may be the source of grain, grain factory leading crystal electric cooperation, both sides in the mainland is expected to add MOCVD in the upstream epitaxial plant, it is pointed out in 2011, AOC is expected to demand for large size panel will be as high as 150 million, with the increase of permeability of LED backlight, to ensure a stable supply of grain, the source of market speculation, is expected to expand the Xiamen crystal electric plant equipment existing, to import the MOCVD machine capacity. This rumor, crystal electricity and AOC both sides of the official statement system are not denied.

AOC group president Xuan Jiansheng said the day before returning to Taiwan, in addition to AUO, CMO, panel makers, will strengthen cooperation with Taiwan factory layout, and particularly crystal electric, sparked concern. As AOC and Everlight, 3 companies have announced in June 2010 that it would spend NT $800 million, set the LED downstream packaging factory in Fuzhou, at present, AOC LED layout lack of upstream grain production capacity, market rumors, AOC is expected to set up the upstream epitaxial crystal electric plant.

This rumor, crystal electric said that if AOC for LED backlight demand enough to meet a plant operation, will not rule out the possibility of cooperation of both sides, AOC official said the case is not clear low-key, current development, Opinions also expressed inconvenience. The two sides did not deny the attitude, it seems to strengthen the possibility of this rumor.

Despite the recent mainland LCD TV (LCD TV) market to inventory pressure, but AOC expects 2010 global LCD TV market size, should reach 30% growth compared to 2009 and 2010, AOC LCD monitor and LCD TV shipments will reach 70 million units. It is pointed out that the internal assessment of AOC, 2011 large-size panel demand will look at 150 million.

Industry estimates, 1 Taiwan LCD monitors in a number of grains of LED backlight application about 50 star, 40 inch LED TV grain amount of about 200, with AOC in 2010 of about 55 million Taiwan LCD monitor, LCD TV shipments of about 150 million units, capacity may not be able to cover the 1 epitaxial plant operations, but with AOC rapid 2011 LED TV, market expansion and rapid growth, if it goes smoothly, the two sides are likely to be announced before the end of 2010 in cooperation.

The current layout of crystal electric in the mainland have been launched, including setting the upstream epitaxial plant branch in Changzhou, and on the second quarter of 2011, is expected to put into operation, as the backlight and lighting applications, early, will import less than 10 units of MOCVD machines, depending on the needs of the future is expected to expand to 30 taiwan. In addition, EPISTAR also spent $8 million (about NT $260 million yuan), Ambrose crown investment group led by UMC (Shandong) photoelectric, and achieved 50% stake, but the crystal power on Ambrose crown operation involvement is not deep.

In the past due to crystal electric in Xiamen LED grain BEOL plant, the geographical position close to the light, and crystal electric billion AOC joint venture Fuzhou LED packaging factory, and Xiamen is the key area, the development of LED industry, the market believes that if AOC crystal electric and additional upstream epitaxial plant, the integration is expected to directly in the Xiamen plant upstream process, because EPISTAR is expected at the beginning of the October meeting of the board of directors, whether further announced major news cooperation, has caused concern to the industry.