Inventec Buys 4.9% Stake in Huga Optotech for NT$540 M.

Taipei, Dec. 7, 2009 (CENS)--The Taiwan-based Inventec Corp., the world's fourth-largest notebook PC maker presently, has spent NT$540 million (US$16.61 million at US$1: NT$32.5) to acquire a 4.9% stake in a Taiwanese leading LED (light emitting diode) maker Huga Optotech Inc., in an effort to diversify its business into LED.

To raise its capitalization to NT$3.6 billion (US$110.7 million) from current NT$2.478 billion (US$76.2 million), Huga has issued 18 million new shares, valued at NT$540 million for capital increment, all of which have been procured by Inventec. Noteworthy is that Taiwan's largest LED packaging company Everlight Electronics Co., Ltd. is also one of Huga's shareholders presently, who spent NT$500 million on convertible bonds issued by the latter.

Optimistic about the market for LED backlights, especially models used for LED-backlit LCD (liquid crystal display) TVs, in 2010, Huga has actively increased capital by issuing new shares and bought new production equipment for blue and green LEDs. Ready to add 39 new sets of MOCVD (metal organic chemical vapor deposition) equipment to its production lines, the firm plans to expand output of LED chips to 2 billion units a month.

Besides, Huga has also established a joint venture with Seoul Semiconductor of South Korea as part of its efforts to penetrate the Korean market for LED chips, considering that Korea-based Samsung and LG are top two LED-backlit LCD TV brands in the world. Industry insiders point out that the joint-venture strategy allows Huga to avoid patent infringements and secure long-term cooperation with Seoul Semiconductor, now the world's fourth-largest LED packaging company.