Business News | Oct 03, 2006

LED chipmaker Epistar to merge with UMC affiliates

After announcing a merger with United Epitaxy Company (UEC) last August and becoming the world`s largest AlGaInP (aluminum gallium indium phosphide) LED supplier, Epistar on September 28 announced it will acquire Epitech Technology and Highlink Technology, two LED affiliates of United Microelectronics Corporation (UMC).

With the official merger to take place on March 1, 2007, Epistar will undergo a share swap with Epitech at a ratio of 1:3.08 and with Highlink at 1:5.5, the LED chipmaker said. After the merger, Epistar will have a NT$5.08 billion paid-in capital, said company president Biing-jye Lee, adding that not only will the maker remain the top AlGaInP LED chipmaker, it will be among the top four gallium nitride (GaN) LED chipmakers worldwide in terms of capacity, with Nichia and Cree also included in the top ranking.

The combined capacity of gallium nitride (GaN) LED chips from Epitech and Highlink is twice that possessed by Epistar, and their client portfolios complement each other - only 1-2 clients among their combined top ten overlap, Lee indicated, adding that Epitech also has strong channel distribution experience in China.

In addition, the combined number of LED patents from the three firms will total more than 800, which will facilitate patent partnerships with international makers, Lee said. Via the share swaps, UMC will also gain shares of Epistar, with the foundry stating it is confident about the potential of the LED industry. Nevertheless, the company said it is still too early to talk about whether it will take on a director position at the LED chipmaker.

UMC now has a 12.55% stake in Epitech and a 30.6% stake in Highlink via affiliated venture capital firms, with the group being now the largest shareholder of Highlink, sources said.

Add comment

You can add a comment by filling out the form below. Plain text formatting. Comments are moderated.

Question: What is 1 + 6 ?
Your answer:

Edison Released Brand New DOB III Series Products

Edison Released Brand New DOB III Series Products The DOB III series increased the efficiency, dimming smoothness also provide ultra- low flicker function (flicker 5% and even 5% during dimming). It is compliant to the 2021 European flicker standard IEC TR61547( PstLM) and to CIE TN006 (SVM) on request. It can be applied in many different lighting ... Read more »


Versatile and Ultrafast – The New CAS 125 Series of Spectroradiometers for LED Production

Versatile and Ultrafast – The New CAS 125 Series of Spectroradiometers for LED Production Instrument Systems – a well-known manufacturer of light measurement technology – works closely with its customers in the field of LED production to develop modular and flexible components for quality inspection in mass production environments. For the new spectroradiometer CAS 125, Instrument ... Read more »