In the future, the new technologies could be transferred to Taiwan-based LED chip packaging houses to strengthen Taiwan's LED industry. Silicon substrate packaging technology on the island should see a significant breakthrough in the near term.

Unlike mainstream ceramic substrates, silicon substrates are superior in heat dissipation. Based on WLP technology, which could shorten the entire packaging process and provide cost advantages when volume production is achieved, silicon substrates are poised for larger market acceptance.

VisEra Technologies, a spin-off of Taiwan Semiconductor Manufacturing Company (TSMC), is one of the leaders in wafer-level packaging for high-performance LED in lighting applications.

Microelectromechanical systems (MEMS) are very important for LED back-end process, said ITRI, noting that its MEMS laboratory is the only one in Taiwan with 2-8 inches MEMS wafer process capability. It aims to assist Taiwanese companies in design, packaging, testing and test volume production. The new research center will also enter development of nanoelectromechanical systems (NEMS) to help LED companies' transition to next generation technologies.

ITRI is in talks with several Taiwan-based LED packaging houses at the moment, and expects to announce new technologies in the near term and begin technology transfer.

In addition to establishing the research center, Oxford Instruments is searching for component suppliers in Taiwan for equipment manufacturing. The company is evaluating the possibility of setting up assembly plants in Taiwan to lower cost and speed up production.