AU Optronics, (AUO 2409.tw) invested some NT 2.5 billion in the LED chip equipment expansion of Lextar, and pre-ordered 15 MOCVD systems this year.

AUO Vice Chairman and Lexstar Chairman H.B. Chen indicated that Lextar’s plant construction has completed, and is now on course for equipment setup. Chen emphasized that Lexstar will become the primary supplier of AUO’s LED chips, supplying over 50% of its demand.

Currently, since Lextar still operates on a smaller scale, the LED chips used in AUO’s panels are still acquired from Japan and other LED chip suppliers in Taiwan. Going forward, as AUO’s demand booms, the supply will be filled from within the group. Furthermore, in order to develop AUO’s independent technology and capacity, Lextar’s role will become increasingly important. Meanwhile, Samsung has also accelerated its installation of LED chip equipment. In the wake of panel makers’ hefty investment, Taiwan’s chip suppliers might see some repercussions.

In addition to the rapid expansion of its LED chips, AUO is simultaneously increasing its LED packaging capacity, including expansion plans for LightHouse Technology and Wellypower Optronics.