Showa Denko and Toyoda Gosei, manufacturers of gallium nitride (GaN) LED are going to establish a joint venture to produce and sell LED in the coming December. However, it seems to cause no change either to gas suppliers such as of high-purity ammonia or to any gas business in respect of consumption at this moment.

The planned establishment of a joint venture originated when Showa Denko spun off the production of gallium nitride (GaN) LED in its Chiba Operations to form a separate company, which was then sold out to Toyoda Gosei who acquired a 70% controlling interest of the company. Showa Denko, therefore, is going to continue its LED business through the new joint company, holding 30% of total shares.

The company used to be the leading domestic manufacturers of gallium nitride (GaN) LED producing 340 million per month. Following Nichia Kagaku and Toyoda Gosei, the company remains to be not only a user of gases including NH3, trimethyl gallium (TMG), hydrogen and nitrogen, but also a producer of NH3 in Japan, Taiwan and China who supplies to the major users of LED, liquid crystal, solar cells and semiconductors.

Of course it is presumed that the new company will exert influences to the gas business depending upon the future production plan of Toyoda Gosei who has acquired ownership. IR Public Relations Office of Showa Denko pointed out that the company’s LED business is expected to grow further owing to the addition of Toyoda Gosei’s high technological power and sales network as well as to cause an increase in demand for high-purity NH3 with high possibility, and that the current demand /supply situation of gases will be maintained for the time being.