The move is driven by the growth in demand for LED backlights for LCD TVs and LED lighting fixtures, which has led to a rapid increase in the demand for blue LED chips. Sharp has invested around Yen15 billion (around ($164 million).

Sharp’s blue LED chip production business at the Fukuyama Plant has been adopted as a project under the “Fiscal 2009 subsidy scheme for promoting the location of low-carbon industry and creating employment” run by the Japanese Ministry of Economy, Trade and Industry.

Sharp says that it “will strive to further enhance the development of eco-friendly products through its cutting-edge technologies and will continue to expand the market for LED business.”