& Epistar will set up LED joint venture in Southern
Taiwan-based Delta Electronics
and Epistar will establish a joint venture maker of
LED epitaxial wafers and chips, tentatively named
Guangzhou Crystalrich Lighting, in Guangzhou City,
southern China, in the second half of 2011, with production
to kick off in 2012, according to Delta.
The joint venture will have a
planned paid-in capital US$125 million, with Epistar
to invest US$89.75 million for a 71.8% stake and Delta
US$35.25 million for a 28.2% stake, Delta indicated.
According to industry sources,
the joint venture will install 30 MOCVD sets for its
initial production capacity and have Skyworth, a China-based
vendor of consumer electronics, as a third shareholder
in order to tap the China market of LED backlight
units for LCD TVs.
Delta has stepped into making
LED lighting products for OEM clients and own-brand
sale and expects to ship 5-8 million units in 2011,
the sources noted. Through the upstream investment
in the joint venture, Delta will not only secure supply
of LED chips but also extend LED business from lighting
to backlights, the sources analyzed. Delta and Epistar
have cooperated to develop a variety of LED lighting
products, the sources indicated.
In addition to Guangzhou Crystalrich
Lighting, Epistar has set up a few joint ventures
in China, including United LED with Taiwan-based semiconductor
foundry United Microelectronics in Shandong Province
and Epicrystal (Changzhou) with Taiwan-based EMS provider
Lite-On Technology in Jiangsu Province.