LED manufacturer Lextar’s Suzhou factory has begun die manufacturing on top of existing package and wire bonding production. The Suzhou factory will introduce an estimated 16 MOCVD to produce 60,000 2 inch dies a month. Adding on the current production capacity of the company’s Taiwanese factory, 160,000 in total will be produce monthly, total production capacity increase of around 37.5 percent. The new production capacity has already entered into a trial phase and is estimated to officially begin 2Q14.

The company is optimistic about the enormity of the Chinese LED backlight and lighting market. The established factory in Suzhou has its own management and sales groups and has duplicated the production line model from Taiwan Lextar’s factory which enables the company to begin production in die along with package and wire bonding. Products produced will be used in tube lighting and lighting modules. Completion of the production line model will help the company tackle the Chinese market.

The 16 MOCVD units owned by the company were actually purchased manyyears ago through the use of government subsidies and have depreciated. Entire production cost is therefore lower. Following the completion of the single production line model in the Suzhou factory will be conducive towards lowering production costs and is hoped to help the company’s cost structure in the future.