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Toyoda Gosei builds second GaN LED factory

Toyoda Gosei plans to invest $140 million in the construction of a second factory for manufacturing GaN-based LEDs.
Toyoda Gosei, a Japanese manufacturer of GaN-based LEDs, has established a facility in Takeo City, Saga Prefecture, Japan, that will serve as the company’s second production base. Construction on the new facility began in April 2004, and LED production is scheduled to commence in May 2005.

Toyoda Gosei, one of the world’s largest manufacturers of nitride LEDs, currently has a single factory in Heiwacho, Aichi Prefecture. The new Kyushu plant will enable the company to meet growing demand for blue LEDs and will also serve to diversify the company’s production base, lowering the risk of production loss in the event of natural disasters such as earthquakes.

The new plant will operate as the Optoelectronics Division, Kyushu Branch on a 1.4-hectare site at Takeo Industrial Park in Saga Prefecture. The plant will have 3,300 sq. m of floor space after initial construction, with scheduled expansion to 7,800 sq. m by 2006.

Toyoda Gosei plans to invest 1.6 billion yen ($14 million) in the project in 2004, 7 billion yen ($63 million) in 2005, and a further 7 billion yen in 2006. To reduce required capital outlays, the company is using land and buildings owned by Toyota Gosei Kyushu Co., Ltd.

Monthly production capacity at the Kyushu Branch will increase from an initial level of 29 million chips to 130 million chips in 2005 and 200 million chips in 2006. The facility will be staffed with about 80 employees initially, with a projected increase to 220 employees in 2005 and 350 employees in 2006.

Toyoda Gosei’s Japanese rival Nichia also recently announced plans to increase its LED production capacity (see Nichia increases LED production capacity).

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