LED chip factory Dingyuan (2426) recently announced that Taichung's new plant Dingcheng Optoelectronics invested 30 million US dollars to purchase equipment from Taiwan Vecco, mainly MOCVD machine equipment.
Ding Yuan said that at present, 7 MOCVD machines have been installed in the Taichung plant and are undergoing trial production. It is expected to start mass production and shipment in Q1 2011, which will become a new source of revenue for the company.
Fuzhou Zhaoyuan Optoelectronics, a new plant in mainland China, will be completed by the end of Q2 2011, and will begin to introduce machine equipment. In the first phase, 30 MOCVD machines will be introduced, and the fastest is expected to be put into production in Q3 2011.
Looking ahead to Q4, Dingyuan expects December revenue to be roughly the same as in November, estimating that Q4 revenue will reach NT$750 million, a quarterly decrease of approximately 25%-30%. With the new production capacity of LED Epitaxial will slowly show benefits, Dingyuan expects the fastest performance in March 2011.
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