(Yicai Global) Aug. 28 -- HC SemiTek Corp. [SHE:300323], a light-emitting diode chip manufacturer headquartered in Hubei province, plans to invest USD150 million (CNY1 billion) to build the world's largest sapphire substrate base in Yunnan province.  

HC SemiTek said on Aug. 25 that its wholly-owned subsidiary, Crystaland Co., has signed a cooperation agreement with the government of the Hongta district in Yunnan's Yuxi city to expand a sapphire substrate production hub, bringing its annual capacity to 35 million chips. Once completed, Crystaland will be one of the biggest sapphire substrate producers.

The site's area as around 75 mu (50,000 square meters), and work is set to begin next month and last for 16 months, HC SemiTek said.

HC SemiTek is one of China's top three LED chip makers by sales and has cooperative ties to many Chinese LED companies including Ledman Optoelectronic Co. [SHE:300162]. HC SemiTek's products were used at the Expo 2010 Shanghai.

Sapphire substrates are used to manufacture LED chips. They have gained favorability as they feature more mature technologies than silicon wafers and silicon carbide wafers and offer improved stability and strength.