Business News | Jul 29, 2010

Taiwan Semiconductor Manufacturing Co., Ltd. Grabs for Renowned LED Maker

An article on the Taiwan Economic News website claimed that TSMC is looking to acquire an LED maker. Mainly two companies are named in different news, Philips Lumileds or Japan-based Toyoda Gosei.
  
Some Industry insiders are affirming that TSMC has been in a formative stage for three years, but both sides haven’t yet reached a consensus due mainly to dissent on acquisition prices.
  
Considering that Philips has built close ties with TSMC by holding a majority of stakes, while TSMC could help improve Philips Lumiled`s operation efficiency and competitiveness with its R&D and production technologies, a merger could be advantageous.
  
Other sources are seeing Toyoda Gosei as a more likely target to be acquired by TSMC. This estimation is based on some information from Lumileds that indicated that Philips is unlikely to give up the company, although Lumileds is not profitable for Philips at the moment.
  
In comparison to the major players, Toyoda Gosei might have a lower profile; nevertheless the company holds some key patents especially for white LED manufacturing. In addition there are rumours, that the parent company Toyota has no intention to expand this business.
   
At the moment the situation is unclear and there is more speculation than knowledge which company will be bought, but it is clear that TSMC is looking for an LED manufacturer to acquire. Independent which company will be a part of TSMC, Lumileds or Toyoda Gosei, finally some substantial changes in the LED manufacturing landscape can be expected.

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