Epistar in Talks with Delta Electronics About Possible Alliance
Source/Type:  LIGHTimes Online - News - Staff reports

July 2, 2010... LED chipmaker, Epistar is reportedly in talks with Delta Electronics about a strategic alliance, according to Epistar and a Digitimes article. The alliance will involve product development and establishment of a LED chip production facility in China, Epistar sources revealed in the article. Industry sources expect the deal to be finalized in August after Epistar's board meeting. Epistar pointed out the new chip production facility will need to be situated near customers, and local government support is also an important criteria. Delta CEO Yancey Hai indicated that because Delta has a LED lighting device plant in Dongguan, Guangdong Province, southern China is a preferred location for joint ventures with others. Since 2009, Epistar has acquired stakes in LED chipmakers Tekcore, Nan Ya Photonics, and Huga Optotech. According to the article, the pan-Epistar group is now equipped with 290 MOCVD machines and is the second largest LED chipmaker globally with a 17% market share.

In perhaps a sign of a maturing industry, several LED companies have begun to ally themselves to help vertically integrate their supply chains. Epistar has plans to jointly set up a LED epitaxial wafer plant with packaging house Lite-on Tech in Changzhou, Jiangsu Province. It has invested US$8 million in affiliate United Microelectronics Corporation (UMC)'s LED lighting subsidiary in Jinan, Shandong Province. And earlier in June, Epistar, Everlight Electroncis, and TPV Technology agreed to build a facility in Fuzhou, Fujian Province for LED chip packaging and LED light strip manufacturing.

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