Lextar Electronics, a vertically integrated company based in Taiwan, announced plans to move part of LED packaging capacity from Taiwan to its factory in Suzhou, eastern China, according to a Digitimes article. The company intends the relocation, which is scheduled for the end of June 2016, to reduce production cost. However, Lextar says it will continue using the Taiwan factory primarily for R&D of high-end LED packaging technologies including COB (chip on board) and CSP (chip scale packaging).
In 2015, the proportion of Lextar’s revenue from LED packaging dropped slightly from 60 percent in 2014 to 55 percent. Lextar says that the marginal drop is mainly due to reduced demand for LED backlighting for displays and TVs. During the same period, Lextar’s share of revenue from LED lighting rose from 40% to 45%.
Lextar noted that it has been developing new CSP technology products such as UV LED, infrared LED, LED-based automotive lighting, and photo couplers. Lextar is targeting an increase the revenue proportion for new products to 10% in three years.
