Showa Denko announced on Tuesday the firm would expand output capacity for aluminium-gallium-indium-phosphide (AlGaInP) ultra bright light emitting diode (LED) chip to meet increasing demand for liquid crystal display (LCD) backlight and automotive parts. The firm will expand the capacity from current 30 million units per month to 100 million units per month in July-September 2007 at Chichibu plant in Saitama Prefecture, Japan with about 1.5 billion yen of investment. The firm plans to increase sales for AlGaInP ultra bright LED chip to more than 2 billion yen in 2007 and double the sales in 2008.Showa Denko will expand a metal organic chemical vapor deposition (MOCVD) furnace, which is equipment to produce epitaxial wafers, chip making facilities and the clean room at Chichibu plant. The firm starts the expansion works in February 2007.AlGaInP ultra bright LED chip is now used mainly for display, auto parts and traffic lights, while the new applications are developed such as LCD backlight and light source for sensors. The demand is expected to grow at about 40% of annual rate in next 5 years.
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