Taiwan-based LED chipmaker Tyntek will invest NT$1 billion (US$31.26 million) to set up a new venture in Taichung for the production of LED epitaxy and sensor components, according to the company. The new facility is expected to make its product lineup, which is currently missing blue LED, more complete, the company indicated.

Scheduled to go online in October of 2011, the new venture will initially be equipped with seven MOCVD machines, and up to 30 in 2011, the company said.

Tyntek posted NT$336 million in May revenues, up 4.95% sequentially and 58% from a year earlier. June revenues should reach NT$350-360 million and about NT$1 billion is projected for the second quarter, rising 25% on quarter and 50% on year, according to market watchers. With sensor components now representing about 30% of revenues, Tyntek's second-quarter gross margin should improve to 20% from 15% in the previous quarter, and EPS will be NT$0.2-0.3 for the period.

Tyntek reportedly will construct a plant in Fuzhou, China as well, but no details have been released thus far.