Business News | Jul 29, 2010

Formosa Epitaxy to Establish the Largest LED Plant in China

LED industry giants, including Formosa Epitaxy (3061), Unity Opto (2499), Amtran, and LG Display (LGD), have jointly-invested a total of NT4.8 billion (~USD 150 million) to set up an LED chip manufacturing plant in Jiangsu – Jiangsu Canyang Corporation (transliterated). Yangzhou Municipal Government, in Jiangsu Province, has also granted NT 2.4~2.5 billion (~USD 78 million) in subsidies to encourage the development of the LED industry in China. 

The Jiangsu Canyang Corporation is expected to become China's largest LED chipmaker. Its operation is slated to begin in May 2010. The company’s initial capital totaled USD 7,200 million, with Epistar holding 51% stake, downstream LED packager Unity Opto also holds 10 ~ 15% stake. Other investors include Amtran and LGD, both eager to tap into the LED TV market. By January 2010, the company’s capital is expected to increase to USD 150 million, with investments from home appliance manufacturers and system integrators in China.