S Korea, Japan firms plan $72m joint venture

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FE Team | Published: March 29, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

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SEOUL, Mar 28 (AFP): South Korea's Samsung LED and Japan's Sumitomo Chemical said Monday they would form a joint venture to produce sapphire wafers, a key material in the manufacture of flat-screen electronic displays. The 50-50 joint venture will be capitalised at 80 billion won ($72 million) and start production of sapphire ingots and wafers from early next year, Samsung LED said in a statement. The company, an affiliate of Samsung Electronics, said the deal is expected to help it secure supplies and meet the rising demand for light-emitting diodes (LEDs). The deal comes amid market concerns about a global shortage of wafers after the March 11 earthquake and tsunami in Japan. Research firm IHS iSuppli said the disaster led to the suspension of a quarter of the global production of silicon wafers, which are used to make semiconductors. But a Sumitomo Chemical spokesman quoted by Dow Jones Newswires said the planned tie-up was unrelated to the quake and tsunami. "Sapphire ingot is a very important component for making wafers used in LEDs, but its price rose sharply last year so we did see only a limited supply of the material," a Samsung LED spokesman said.