Taiwanese LED Chip Manufactures Benefit from Large Order from Samsung

Taiwanese manufacturers could soon see an increase in flip-chip shipments as Samsung begins to purchase LED flip-chips from Taiwanese manufacturers. The Korean manufacturer started using flip-chip technology in their LED TV backlighting last year. Taiwanese LED chip manufacturers to benefit include Epistar, Forepi, and Genesis Photonics Inc (GPI), according to China Times Inc.

Samsung was one of the first large manufacturers to incorporate flip-chips into LED TV backlighting. The company plans to mainly use flip-chips in their direct-lit LED TV line which they launched last year. It is estimated that the percentage of direct-lit LED TVs will increase this year from 80 percent in 2013.

With Chinese government subsidies making a turn towards consumers rather than upstream manufacturers, LED manufacturers will have a more even competition which will benefit blue LED supply and demand. Equipment manufacturers anticipate a leveling of supply and demand around the end of 2014 to 2015.

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