Sharp is to open a new fab for production of blue LED chips after a 15 billion Japanese Yen (£111 million) investment.
The new plant will be in Fukuyama City in the Hiroshima Prefecture of Japan. The project will fall under a low-carbon, employment creation subsidy scheme that the Japanese Ministry of Economy, Trade, and Industry is promoting, and is being backed by significant capital.
“Growth in demand for LED backlights for LCD TVs and LED lighting fixtures has led to a rapid increase in the demand for blue LED chips,” Sharp said, revealing its motivation for the move.
This will be the second fab the company has opened in 2010 for the production of blue LED chips. In January it opened its first in Mihara City, also in the Hiroshima Prefecture.
“To meet positive market demand in the mid to long term, we have decided to start production at the Fukuyama Plant as well and to expand materials procurement,” the company said. “This will boost our production capacity of blue LED chips to approximately five billion units a year in fiscal 2011.”