The company has been observed to be expanding its production capability very actively. The monthly capacity for September is expected to reach 90,000 LED wafers and 750 million LED chips. Projections say that by the end of 2010, production will reach figures of 130,000 wafers and 850 million chips.

In the area of LED chip packaging, capacity is on schedule - to reach 750 million chips in September and up to 850 million chips at the end of the year, which is slightly lower than the projected one billion. Sources have also revealed that Capex for the year will rise from the previously planned NT$8 billion (250.28 million) to NT$10 billion.

It is anticipated that the LED industry will grow at a tremendous pace in the coming years, due to TV and monitor backlight applications moving to larger and higher power LED chips. As of now, most LED chipmakers in Taiwan are manufacturing through 2-inch MOCVD sets, at a time when their Japanese, South Korean and European rivals have already transitioned into using 6-inch equipment for production. There are justified fears that Taiwan's LED chipmakers could fall behind in manufacturing capability in the face of this development. Lextar will have prime position if the production transition takes off as anticipated.

Although there have been a few reports recently that certain TV vendors have lowered their shipment targets, sources at Lextar have expressed their opinion that LED backlight technology may account for 50 p.c of both the LCD TV and LCD monitor markets in 2011.