Taiwanese LED chip manufacturer Genesis Photonics Inc. (GPI) has begun its vertical integration strategy in 2013, and will be moving from chip manufacturing to packaging and module production. The company’s new Kunshan factory will be focused in the areas of LED packaging and module production, said the company Chairman David Chung. GPI’s current flip chip monthly production capacity for LED chip packaging is about 4KK.

LED industry’s value chain has shifted from upstream LED chip manufacturing in the past to downstream modules, said Chung during Sustainable Green Development Global Green Business Outlook 2014 Conference on Dec. 17, 2013. The conference was organized by Taiwan’s Ministry of Economic Affairs (MOEA). This is also why GPI has extended its business model from a LED epitaxy and chip supplier to downstream packaging and module products. With the company’s new Kunshan factory entering packaging and module production.

Due to the much shorter recruitment and employee training period at the end of 2013, the company expects the new Kunshan factory to begin production in 2014, said Chun. GPI has already released new module products in 2013, including LED candle lamp and other luminaires that use flip chip with remote phosphor technology.

In terms of the manufacturer’s overall production capacity, GPI 2 inch LED wafers has a monthly production capacity of 200,000 pieces. Out of these, blue LEDs account for 80 percent, while green LEDs and UV LED make up around 15 percent. GPI aims to increase same sized LED brightness 10% annually, and expand production capacity by improving yield rates in 2014.