Taiwan’s LED industry seems to recover as the government planning to hike electricity rates and capacity utilization rate at Taiwan’s LED companies approaching 100%.

According to industry executives, chipmakers Epistar and Formosa Epitaxy Inc. have sold out their capacities for the second quarter while productions at packagers Evelight and Unity Opto Technology Co., Ltd. are approaching full capacity. Harvatek Corp. has won contracts to supply LED backlights used in iPads while Opto Tech Corp. has secured subcontracts from Sharp. According to Unity Opto executives, the company has recently landed considerable orders from customers planning to replace traditional lamps with LED lamps in offices and commercial sites. They estimated vigorous LED replacements for traditional lamps will start in June this year.

As a result, industry executives are optimistic about a bright outlook for the LED industry in the second quarter.