China Glaze Group profit jumps fourfold in Q2; actively ventures into the field of LED phosphor powder

As the largest enterprise in Asia’s glaze industry, China Glaze Group expands its business field into the LED industry. The target monthly output of LED phosphor powder was raised to 450kgs~600kgs from its initial 100kgs. The production is expected to grow fourfold, and the visibility exceed 1 ton. Due to the low cost of raw materials, the group may achieve NT$50 million in profit during Q209, which is 4 times that of 1Q09.

China Glaze group’s phosphor powder business has been affected by Nichia’s patent – initially, the powder was mainly sold to China, however, many Taiwan LED manufactures have recently started aggressive price and contract negotiation with the group. As Nichia’s patent expires next year, China glaze aims at expanding its main customer base to include both domestic and global LED manufactures, and become an international giant. Currently, the China Glaze Group is paving the way for its expansion as it continues to increase equipment and capacity and will be fully-equipped by the end of this year.

 

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