Taiwan-based PlayNitride plans to kick off construction at its second micro LED chip production line soon, having secured the first part of the funds for its US$50 million expansion project, according to company sources.

The second production line is slated for completion and volume production during second- to third-quarter 2021, expanding the company's capacity by 2-3 folds, said the sources.

The company's existing major shareholders, including Samsung Electronics, Epistar, Hermes-Epitek and AU Optronics (AUO), will commit new investments in the ongoing expansion project, the sources noted.

The company expects the production cost of micro LED chips to be lowered by 95% within five years, with the cost reductions to be most meaningful in the first two years.

It also aims to reduce the size of micro LED chips to 15-micron x 30-micron by 2021 from the current mainstream of 30-micron x 60-micron, as chip size reduction is the most effective way to bringing down unit costs, added the sources.

For its future development, the company also plans an IPO issue by year-end 2021 at the earliest.

By DIGITIMES