LED chipmaker Genesis Photonics has completed the construction of its third plant, located at the Tainan Science Park (TSP). Genesis will install a 6-inch epitaxial wafer production line in the plant.

David Chung, chairman of Geneis Photonics, pointed out improvements in technology can help to bring market demand. Genesis will introduce new LED lighting module products by end of the year and expects shipments to begin in first-quarter 2012. Genesis aims to increase revenues from lighting from the current 30% to 50% in 2012.

Chung added that the current capacity utilization rate is around 70% and the fourth quarter should be the low point of the LED industry. However, Genesis expects to make profits despite the downturn of the market. When inventory has been cleared out, shipments are likely to increase in 2012. Chung anticipates the market to rebound in second-quarter 2012. By the second half of 2012, the LED lighting market will take off, said Chung.

As for the new plant, by end of the year, there will be around 65 MOCVD tools with 6-inch epitaxial wafer annual capacity reaching 5,000 units.

According to Chung, the China market accounts for 60-70% of the sales of LED lighting products and Japan 20-30%.