Business News | Nov 16, 2006

No need to cut blue LED chip prices after Epistar-Epitech merger

After Taiwan-based LED makers Epistar and Epitech merge, Epitech will no longer need to slash prices of its blue LED chips to compete against Epistar, according to executives from both companies as quoted by the Chinese-language Economic Daily News (EDN).

Epitech stopped slashing its LED chip prices recently and Epistar expects its procurement costs will drop by NT$20 million in the fourth quarter and plans to hold a shareholders meeting on November 21 to discuss merger issues, the paper said. Highlink Technology, another company to be merged with Epistar and Epitech, has quoted its LED chips at the same level as that of Epistar and Epitech, the paper added.

Epitech and Highlink will officially merge with Epistar on March 1, 2007, according to an announcement by the company on September 28 of this year.

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