Your reasoning for the 2" wafer surprises me because most semiconductor work scales well, and the cost to buy and process larger wafers is only slightly more expensive while the surface area is much larger. A 6" wafer is 9 times as big as a 2" one.
Secondly, upgrading your Fab to switch your process to larger wafer size has a 10-figure $ price tag. It's not trivial for digital, let alone opto electronics. LEDs are special in that they deviate severely from the standard mos process. When Monsanto first produced them they almost dumped the idea for LEDs because of all the issues to deal with the exotic materials.
I don't understand this. Given a fixed size die, the number of dies near the edge would go up linearly as the wafer size goes up. The number of interior dies would go up quadratically.