Taiwan based electric wire and cable maker Walsin Lihwa is going to join the LED market and placed an order for Aixtron AG MOCVD systems in the second quarter this year, with the systems being delivered this quarter.

LED industry players indicated that Walsin Lihwa's investment will target both upstream and downstream segments of the LED industry. However, Walsin Lihwa commented that MOCVD systems can be used for various purposes, so the move does not necessary mean it is entering the LED market.

The industry players noted that LCD panel maker HannStar Display is a member of the Walsin Lihwa Group so entering the LED business may make sense if the company is looking to produce LEDs in house for use in backlighting applications for HannStar's medium-size panels. HannStar is working to boost its medium size panel shipments, and estimates of its quarterly shipment may reach five million panels in the second half of the year. LEDs used in HannStar's backlighting applications mainly come from Unity Opto and Everlight's light bar, with less than 10% coming from Japan-based Nichia.

However, the MOCVD system Walsin Lihwa purchased are for producing GaN-based high-power blue LEDs, which are used in general lighting, market sources indicated, while adding that this is a different market than that for low-power LEDs used in LCD panels. Therefore, the Walsin Lihwa purchased MOCVD systems should have nothing to do with supplying HannStar.

Since its original foundation in 1966 as Pacific Electric & Wire, Walsin Lihwa has become a leading optical cable and wire company, and has expanded into successful international enterprises with investments in semiconductor manufacturing, electronic components and the optical industry.