Business News | May 14, 2016

Epistar to Partner with End Product Manufacturers with Increased Issues of 165M Shares

The board of Taiwanese LED chip manufacturer Epistar decided to invite strategic partners through Global Depository Receipts (GDR) or private equity (PE). Epistar locates at the upstream in the industry supply chain and the partnership with application clients secures the company’s oversea exit, said Epistar Spokesman RiderChang. In other words, the company intends to partner with the clients of their client through stake investment.


The capital increase project through GDR or PE is raised for consideration prior to the company’s shareholder’s meeting taht is to be launched on June 17, 2016.

The stake released by two capital increase, including GDR and PE, will not exceed 165 million shares. Epistar will decide to launch both or one of the approach for capital increase. Should all 165 million shares being issued, Epistar will see NT $12.65 billion (US $388.7 million) increase in capital stock.

To secure partnership and keep the company up-to-date with application market, Epistar seeks partnership with “the client of their client” through stake investment, said Rider Chang. However the company did not reveal specific partners and the related progress of the partnership.

Epistar’s new capital increase aims at inviting new partners from different position of the supply chain rather than fulfilling an actual capital need.

The company’s AlGaInP LED has reached full production capacity, which will surely help resume the revenue growth in the second quarter. The application of AlGaInP LED are more favored by automotive, security surveillance and indoor and outdoor signage.

As Epistar’s AlGaInP LED development is ahead of others and there are less competitors in the market, the company’s AlGaInP LED revenue income is expected to account for 25% to 30% of the total revenue. The company’s new IR LED application, industrial inspection, is also on track. The IR LEDs are co-designed with package clients and will be introduced to B2B market. 

Meanwhile, the company’s lighting orders remain stable as Epistar accepts only price-competitive orders.