Epistar Buys 40% Stake in Nanya Photonics

Taipei, April 30, 2010 (CENS)--Epistar Inc., currently Taiwan's No.1 manufacturer of light emitting diode (LED) epi wafers, recently acquired a 40.75% ownership, or 81 million shares, in Nanya Photonics Inc. for around NT$839 million (US$26 million), as part of their plan to work together to develop light emitting diode (LED) lighting products.

The acquisition makes Epistar the largest shareholder of the LED affiliate of Formosa Plastics Corp., Taiwan's No.1 petrochemical manufacturer.

Nanya is another epi-wafer maker that Epistar has invested in after Tekcore Co., Ltd. The difference between the two acquisitions is that Epistar will send technologists to help Nanya develop high-power chips whereas in Tekcore it simply holds stakes.

Nanya is operating five metal organic chemical vapor deposition (MOCVD) systems for cranking out blue LED epi wafers and will add 10 systems soon. The company has begun introducing blue chips for LED streetlights, LED light tubes, LED MR16 lights, and LED cabinet light bars.

Industry executives estimate Nanya would phase out of chip making for lighting-fixture development, sourcing chips from Epistar and modules from dedicated manufacturers. The company has co-founded lighting-fixture venture Trend Lighting Corp. with carmaker Yulon Group and epi-wafer equipment supplier Precision Silicon Corp.