LED chip factory soared due to increased demand for chips

According to reports, with the increasing use of LEDs in backlight TVs and lighting systems, the demand for LEDs continues to rise, and manufacturers are beginning to build LED factories.

TSMC and De Core Nanosemiconductor plan to enter the LED supply chain by investing in their first LED chip factory, while the US company Xuming SemiLEDs has begun to expand its LED capacity.

At the beginning of this year, SemiLEDs plans to build a new LED chip factory in Foshan, Guangdong, China. The construction of the plant will be handled by its Xurui Optoelectronics. SemiLEDs invested $350 million in the latter to own 49% of the shares, and the remaining 51% were shared by six companies.

TSMC's first LED chip factory has already broken ground in Hsinchu Science Park. They believe that the expertise on its integrated circuits is equally applicable to the production of LEDs. Dr. Rick Tsai, head of TSMC's new business unit, said they will leverage industry-leading semiconductor manufacturing experience to process, package and test LEDs.

In addition, De Core Nanosemiconductor plans to invest 20 billion US dollars to build a new LED factory.

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