Taipei, Nov. 14, 2012 (CENS)—Formosa Epitaxy Inc. (FOREPI) Chairman F.J. Chien yesterday said San’an Optoelectronics Co., Ltd.’s 19.9% acquisition of his company’s ownership will help his company enter mainland China’s LED market and bring down his company’s production cost.
The two companies signed the deal yesterday, making mainland Chinese LED maker San’an the No.1 institutional shareholder of FOREPI. Industry executives estimated San’an will hold at least two seats at FOREPI’s board of directors after FOREPI completes its capital increase plan.
Jien noted that after the deal with San’an his company will enter into alliance with BOE Co., Ltd., mainland China’s No.1 LCD maker, whose products use LED as backlight.
He pointed out that in world LED market, Taiwan’s manufacturers face not only competition from South Korean and mainland Chinese manufacturers but also competition from European, American and Japanese manufacturers. In the competition, the company, he said, has neglected the importance of capacity size until entering into alliance with San’an.
San’an’s chairman, Lin Xiucheng, estimated the partnership would help slow down undercutting competition in the market. He said the partnership will help the two companies in bringing down cost and squeezing into supply chains of international brand names.
(by Ken Liu)