Linde LienHwa (LLH) China has further strengthened its commitment to LED manufacturing with the announcement of an exclusive gas supply agreement for bulk gases and high purity ammonia (NH3).

LLH has signed the agreement with Kaistar, a joint venture of Epistar Taiwan and China Electronics Corporation (CEC), to deliver bulk gases and high purity ammonia (NH3) to Kaistar’s new production facility in Xiamen, China.

Specialist high purity gases are crucial for the manufacture of LEDs. Ultra high-purity ammonia is used to ensure the highest quality LED devices. This is because oxygen-containing molecules such as moisture, even in trace quantities, can significantly reduce their light output.

Kaistar’s new facility will be constructed near to Linde’s recently established ultra-high purity ammonia plant in Xiamen, opened in 2010 to meet demand from the fast-growing Chinese LED industry. The facility is the first operating plant in China to produce ultra-high purity ammonia and will supply customers, such as Kaistar.

“As LED chip manufacturers look to adopt more advanced, cost-effective and energy-efficient manufacturing processes, the demand for Linde’s leading gas solutions will continue to grow”

Andrew Lau, President and General Manager of Linde LienHwa China

Linde’s ammonia purification plant guarantees security of supply to Kaistar’s new facility and to other LED manufacturers’ facilities as the growth of the local LED industry continues. The plant, which has an initial capacity of 500 tonnes per year, produces ultra-high purity ammonia at 7N (99.99999 percent) level.

“Kaistar will become one of the world’s leading LED total solution providers, making this exclusive agreement our most significant gas supply contract in the LED sector to date,” commented Mr. Andrew Lau, President and General Manager of Linde LienHwa China.

“As LED chip manufacturers look to adopt more advanced, cost-effective and energy-efficient manufacturing processes, the demand for Linde’s leading gas solutions will continue to grow. We are confident that our ammonia supply capabilities in Xiamen are able to meet a wide range of LED customer needs.”

To help reduce the cost of manufacturing and to ensure consistently stable high purity, Kaistar will use Linde’s new SPECTRATMPURE high flow ammonia delivery system. The SPECTRATMPURE system provides the very high flow rates and cost-effective logistics required for high volume manufacturing in today’s large fabs, with integral purification helping to improve process consistency and ensuring the highest available purity supply to Kaistar’s facility.

LLH is The Linde Group’s joint venture with the LienHwa MiTAC Group of Taiwan

 

Growing and growing

According to a Linde Group press release, the analyst group iSuppli estimates that the Chinese LED market will reach US$6.9bn in 2012 and up to $11.1bn by 2015, which is the equivalent of a five-year compound annual growth rate of 17.7%.

This rapid growth is reinforced by lucrative incentives and funding led by the Chinese government and subsidies provided by local governments to stimulate the country’s LED manufacturing industry. 

The first subsidy policy on LED general lighting applications is being jointly conceived by the China NDRC and Ministry of Treasury, totalling RMB 8bn, and is planned for launch in 2012. The policy to stimulate the end-market is expected to further expedite the penetration of LEDs in general lighting, creating domestic demand for the vast capacity of LED supply built in the past two years.