Showa Denko K.K. (SDK) has decided to split its business in gallium-nitride (GaN)-based blue LED chips, and transfer 70% of shares in the new company to Toyoda Gosei Co., Ltd. (Toyoda Gosei), by the end of this year.

SDK is producing and selling a wide variety of LED chips, including aluminum-gallium-indium-phosphide (AlGaInP), gallium-arsenide (GaAs), gallium-phosphide (GaP), and GaN.  The joint venture will be established in the area of GaN LED chips being produced at SDK’s plant in Chiba Prefecture.

SDK is already cooperating with Toyoda Gosei, a world leader for the development and marketing of GaN LEDs.  By establishing a joint venture with Toyoda Gosei for the GaN LED business, we will further strengthen our relations with Toyoda Gosei and expand overall supply capacity.  At the same time, we will aim to achieve synergistic effect in R&D, improving brightness and production efficiency.

In the LED business other than the GaN LED chips, SDK will continue its independent operations.