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Arima scales up AlGaInP LED capacity

Key Taiwanese LED manufacturer Arima Optoelectronics moves to boost chip production with three new planetary reactors from Aixtron.

Taiwan-based Arima Optoelectronics has ordered three more of Aixtron's 49x2-inch MOCVD systems, according to the Aachen, Germany, company.

The high-volume AIX 2600G3 reactors will be used to manufacture AlGaInP-based LEDs at Arima's facilities in Dashi and Houko, while Arima also has plans to scale up laser diode production.

The move comes amid some press reports that major LED producers such as Arima are waiting for demand for their chips to stabilize before committing to major capacity upgrades.

A recent story in Electronic Engineering Times reported that Arima would not expand capacity until early next year, for example, while Epistar was said to be waiting for stronger demand for LEDs to be used in large-scale backlights before committing its resources.

"We have already expanded our capacity for AlGaInP-based LEDs and related products at the Hsinchu plant that we acquired through our merger with Kingmax Optoelectronics," said Arima president PJ Wang.

"The plan is to increase the volume to 40 million units per quarter by next year. We also intend to begin shipping high-brightness blue LEDs this year and increase laser diode production to 7 million per quarter," he continued.

Aixtron has supplied deposition equipment to Arima since shortly after the Taiwanese firm was established in September 1998.

Arima s most recent sales report - for July 2006 - showed revenue of NT$288 million ($8.8 million). That figure marked a decrease of 6.5 per cent on June sales, but a 26 percent increase year-over-year.

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