Due to slower-than-expected demand for LED backlights for LCD TVs and inferior cost efficiency relative to Taiwan’s manufacturers, South Korea’s top LED chipmakers are reported to decide to halt their expansion plans.

Early last year, South Korean manufacturers intended to add a total of 600 MOCVD chambers. But they have stopped at only 150 to 200 MOCVDs. Samsung has set aside part of its backlight chips for lighting purposes to ease pressure on oversupply.

As a result, Taiwan’s LED chipmakers including Epistar, Formosa Epitaxy and Genesis Photonics are expected to easier to seize this opportunity.

Additionally, according to industry executives, reported cuts of sapphire-substrate prices in the third quarter would further boost gross margin of Taiwan’s chipmakers.