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SDK to Further Increase Ultrabright Red/Yellow LED Chip Capacity

Showa Denko K.K.
December 11, 2007

Showa Denko K.K. (SDK) has decided to increase its production capacity of aluminum-gallium-indium-phosphide (AlGaInP) ultrabright LED chips at the Chichibu Plant from 100 million units a month at present to 200 million units a month by the end of 2008. SDK will invest ¥1.2 billion for this expansion to meet growing demand for use in outdoor displays and automotive parts. The expansion is in addition to the earlier expansion from 30 million units a month to 100 million units a month completed in October 2007.

AlGaInP ultrabright LED chips are now used mainly in outdoor displays. However, new applications are being developed, including automotive parts (rear lights, interior lighting) and LCD backlighting for flat-panel TVs and PCs. Thus, demand for AlGaInP ultrabright LED chips is expected to grow 30% or more a year.

Reflecting customers’ high valuation of our product, we are receiving more and more orders and inquiries. We have decided on the additional capacity expansion to fully meet customers’ requirements in and after 2008.

Fully utilizing our proprietary technologies, we have achieved the world’s highest-level brightness in our AlGaInP ultrabright LED chips (our estimate based on information available at present). Furthermore, we can provide them in diverse colors, such as red, orange, yellow, and yellowish green, and in a wide variety of sizes as required by respective customers.

Under the Passion Project, a consolidated business plan that runs from 2006 through 2008, SDK is expanding its ultrabright LED business as a “new growth-driver” business. SDK is aiming to increase sales of ultrabright LED chips—consisting of gallium-nitride blue/green LED chips and AlGaInP red/yellow LED chips—to ¥15 billion in 2008.

A lamp that uses SDK’s ultrabright AlGaInP LED chips

SDK’s LED chip lineup

For further information, contact:
IR & PR Office (Phone: 81-3-5470-3715)