Epistar, China Electronics Set Up Joint Venture in Southern China

Taipei, Oct. 28, 2010 (CENS)--Epistar Corp., a leading Taiwanese maker of LED wafers and chips, has teamed up with China Electronics Corp. (CEC) to set up a joint venture in southern China, according to the firm.

Epistar is now the world's largest supplier of red LEDs by output and ranks among the world's top three makers of blue LED chips. The firm's sales revenue for the first half of 2010 amounted to NT$9.2 billion, with 20% generated each from LED lightings and LED backlights for use in LCD TVs.

CEC is a state-owned high-tech company, which has scores of subsidiaries and several display panel and LCD TV manufacturing factories in China. Therefore, the cooperation between the two top-caliber firms has actually drawn intense attention of industry insiders worldwide.

Accordingly, the Epistar-CEC venture will be equipped with a large number of MOCVD (metal organic chemical vapor deposition) chambers, engaged in production of epitaxial wafers, chips, light sources and lighting products, most of which will be used by CEC in its LCD panels, monitors, TVs and lighting. Besides, the two sides will hold a 45% stake each in the joint venture, leaving the remaining 10% to another partner.

The collaboration is believed to further enhance Epistar's share of the global market for LED backlights, because of CEC's massive demand. For example, the latter's affiliate TPV Technology Ltd., now the world's largest monitor maker with a global market share of 32-33%, has intended to boost output of LED-backlit LCD TVs to account for 50-60% of the total in 2011, with LED-backlit products to command an 80% share of its overall shipment.

Thus, the Epistar-CEC venture will bring about mutual benefits to both sides by securing the former an enormous business chance and helping the latter enhance integration of a supply chain of LED chips and backlights.