Sharp will start mass producing blue LED chips at its plant in Fukuyama City during 2010, following a €137m investment.
"Growth in demand for LED backlights for LCD TVs and LED lighting fixtures has led to a rapid increase in the demand for blue LED chips," said the firm.
Sharp only began the production of blue LED die, the chips inside white LEDs, at its plant in Mihara City this January.
"To meet positive market demand in the mid to long term, we have decided to start production at the Fukuyama Plant as well and to expand materials procurement," said the firm. "This will boost our production capacity of blue LED chips to approximately five billion units a year in fiscal 2011."