Joint Venture to Produce Sapphire Wafers

Samsung LED is collaborating with Japan's Sumitomo Chemical in South Korea to develop sapphire wafers that will help produce lighting parts in consumer electronic products such as flat-screen televisions.

The $72 million endeavor will address the worldwide wafers shortfall post the recent earthquake in Japan. Market research firm, IHS iSuppli reports that recent events in Japan have adversely impacted semiconductor production worldwide.

Samsung has announced an investment of $36 million in the in the equal partnership with Sumitomo. The collaboration will manufacture Sapphire ingots to be used in developing wafers. The wafers will be utilized exclusively by Samsung in diode chips that produce light.

While Sumitomo has said that the recent events had not impacted the company or the wafer market in particular, Samsung refrained to discuss the issue. The collaboration plans to erect a production facility by the year-end and commence large-scale production of wafers from the first quarter of 2012.

Source: http://www.samsung.com/