Samsung LED, headquartered in Suwon, Korea, signs joint venture agreement with Sumitomo Chemical, headquartered in Tokyo, Japan, to develop, manufacture, and sell LED sapphire substrates.
The new JV will primarily start as sapphire substrate business. In future, this South Korean business aims to grow into a supplier of LED-related materials.
Sapphire ingots are cut into thin sheets and they are converted into sapphire substrates. Then the substrates are provided with luminescent coatings, which results in LEDs. The LEDs possesses several advantages that include excellent color rendition, less electricity consumption, and greater luminescent efficiency. LEDs are used in broad range of sectors, including automobiles, interior lighting, and LCD television backlights. Hence, the demand is expected to rise for LED sapphire substrates.
Sumitomo Chemical offers raw materials for production of sapphire substrates and LEDs. Dongwoo Fine-Chem, subsidiary of Sumitomo Chemical, has started developing sapphire substrates last year and it is taking initiatives to expand the production facilities. Samsung LED plans for investment in strategic expansion. The partnership will help both the companies to gain further technology competitiveness in the LED market for significant growth.
Source: http://www.sumitomo-chem.co.jp/