Unity Opto Acquires New Factory to Expand LED Production

Unity Opto is optimistic about long term market development for LED lighting. The Taiwanese LED package manufacturer announced its plans to acquire a factory in the Wugu Industrial Park in Taiwan on April 24, 2014. The company will invest NT $1.23 billion (US $196.7 million) in acquiring the factory to expand its lighting production line. After expanding production capacity, it is estimated that monthly production will increase from 1 million units to 3 million units. 

The company’s large investment in procuring a new factory indicates strong future orders, said Wu Ching-huei, Unity Opto Chairman.  

After two years of development, Unity Opto’s LED lighting products have successfully entered large distribution channels in the U.S. and Europe. The company has opted for production manufacturing to be solely performed in Taiwan in order to meet the government policy for Taiwanese manufacturers to return investments back to the country as well as to satisfy U.S. and European LED lighting client order demands. Additionally, the company faces a need for larger factory space due to LED package manufacturing moving into light fixture assembly and retail, including light fixture modules, installation, packaging, and transportation. The new factory will also provide convenience for daily cargo shipments. 

The new factory in Wugu Industrial Park is 1800 ping (5950 square meters) in size on a 6400 ping (21,156 square meter) plot. After construction, it is anticipated to triple Taiwan lighting production line space. Monthly production capacity will increase from 1 million units to 3 million units. The company expects to see benefits by 3Q14 with LED lighting operating revenue proportions reaching over 35 percent.

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