MicroLED chip specialist PlayNitride is investigating obtaining strategic investment from downstream partners in order to raise funds for capacity development, according to the Taiwan-based company.
PlayNitride revealed that it is presently evaluating a new round of capital expansion plans, seeking finance to purchase factories or expand existing sites, and is considering introducing downstream customers as strategic investors to enhance its supply chain.
PlayNitride expects to begin its capacity expansion push by the end of this year, given that its current monthly production capacity of 1,500–2,000 6-inch equivalent wafers is fully occupied. Furthermore, the company has decided to significantly increase its capital expenditures in 2024 from the NT$90–100 million budgeted this year.
Recognizing the rising geopolitical concerns, PlayNitride is open to expanding production capacity elsewhere, the LED chipmaker said. In addition to its US-registered production subsidiary, the company's European and Japanese subsidiaries are preparing for local production activities, particularly the mid-stage manufacturing process of COC backplane-to-backplane.
The benefits of overseas production include lower transportation costs and better customer service, according to PlayNitride. Potential alternatives to consider include the establishment of local manufacturing facilities and the development of assembly capabilities.
Fellow bigger international peer Ams Osram recently revealed plans to raise a total of EUR 2.25 billion (US$2.39 billion) via new corporate bonds, capital increases, and other financing methods. The goal is to "secure long-term stable financial base for structural growth," the company said.
In September, Ams Osram announced that it had received notice of substantial public funding by the German federal government and the Free State of Bavaria. Subject to the final notice of grants, the company expects to receive more than EUR 300 million in public funding over the next five years.
According to Ams Osram, a portion of the funds will be used for the company's microLED R&D and production. The company is currently building its first pilot assembly line for 8-inch wafer production in order to launch cost-effective large-scale production of highly innovative microLEDs in the near future.
Ams Osram has not provided a timeframe for the 8-inch MicroLED pilot production line put up in Germany, but its Kulim facility in Malaysia is preparing for mass production of microLEDs. The new Malaysian facility is projected to contribute significantly to the company's microLED sales growth, according to industry sources.
Article translated by Jessie Shen
