Chinese LED Manufacturer Plans Record LED Investment in Taiwan
LED manufacturer San’An Optoelectronics has recently announced intentions to make an investment in Formosa Epitaxy of ca. US$80 million and in order to obtain a 19.9% stake.
San’An Optoelectronics Co. Ltd is one of China’s largest LED manufacturers and upstream producer of LED lighting technology, and has recently announced it decision to invest NT$2.33 billion or ca. US$80 million in the Taiwan based company Formosa Epitaxy (Forepi), a Taiwanese manufacturer of LED wafers and producer of advanced LED chips used for lighting and LED illumination modules.
Formosa Epitaxy is one of Taiwan's leading LED manufacturer and producer of light emitting diodes and LED chips, and has announced in a press statement released recently that it has scheduled to sell up to 120 million new stakes at NT$ 19.6 per share to San'An via its Xiamen based Fujian subsidiary that is 100% owned by San'An.
San'An Optoelectronics which is currently one of China's biggest LED manufacturers, would then become the company's largest corporate stakeholder ahead of Mitsui & Co of Japan which currently holds a 15% share of Epitaxy.
This investment into the LED manufacturing industry is currently still pending government approval, however and according to Taiwan's Investment Commission, if it succeeds would be set to become the biggest single investment by a Mainland Chinese company since Taiwan relaxed its regulations on mainland investment in 2009.
The global LED market and with it the LED manufacturing industries have seen a rapid growth and quick market adaption, especially also in the fast growing new markets and the emerging economies.
Initially, the LED manufacturing industry been able to take-off recently because of the fast user adaption of a wide variety of media applications, such flat-screen LED monitors, large scale TV backlights and also their smaller but sales-driving handset cousins.
LED illumination and LED lighting applications such as the usage of LED light for street lighting and other large-scale municipal construction projects such as e.g airports, railway stations and indoor venues are expected to further boost the rapid growth of the LED manufacturing industry throughout the next years.
China is a good example of how fast LED lighting technology is being implemented in urban city planning, and government plans to install 2 million LED streetlights between 2010 and 2012 in 50 of the 1st-tier Mainland China cities seems to have been realized.
Further, in most new Chinese large-scale urban infrastructure projects the illumination and lighting used is now based on LED technology, which is already prominent and visible on many of the new airports and train stations throughout the country.
The fresh capital injection from San'An Optoelectronics, which specialized in manufacturing of advanced LED technology such as full-color high-brightness LED chip manufacturing and ED wafer production would help “strengthen its financial position, expand its business scale and enhance its competitiveness”, according to an announcement in a press release by Formosa Epitaxy, the second largest manufacturer of LED chips and LED lighting technology modules in Taiwan.