LONDON OKI Data Corporation is to buy substantially all the assets of Renesas Technology Corp's former semiconductor front-end process line in Takasaki, Gunma Prefecture, Japan , in effect increasing by a factor of four its capacity to make LEDs.
The enhanced capacity is targeted to be used in LED printers.
ODI's development and LED front-end process production work currently take place at its Hachioji facility. These operations will be transferred to the new facility acquired from Renesas, with the new capacity coming on stream in April, 2010.
The new plant is situated near OKI Data's Takasaki facility, where printer development work takes place.
ODI says the anticipated shortening in product development time due to this close proximity was a key factor in the decision to make the acquisition.
Renesas closed the front-end process line of the Gunma Development Design and Device Division in October 2007 as part of a major reorganization.
The semiconductor manufacturing equipment had already been removed from the plant, and plans were underway to revitalize it as a clean room facility by transferring it to a new owner.
Terms of the deal were not revealed. Oki said the acquisition is part of growth strategy to increase LED related businesses and opportunities.
"This is the first of many decisions I will be making with regard to developing new businesses to accelerate our growth strategy. I believe that increasing our LED production capacity will enable us to apply our competitive LED technology not only to our printers but also to new areas, such as ultra small displays, where growth is expected,” said Hideichi Kawasaki, President at OKI Electric Industry.
OKI’s LED technology is currently used in the print heads as a light source for its non impact printers. The group also develops "Epi Film Bonding (EFB) technology" in which without the need for adhesives, thin film material is bonded by utilizing the intermolecular bonding force working to hold the film together.