Lextar Electronics has announced that its official merger with Wellypower Optronics is set to take place on February 1, 2013. Upon the merger of the two LED subsidiaries of AU Optronics (AUO), Lextar will have a capital value of NT$5 billion (US$169 million) and will be able to achieve a more complete and vertically integrated business model as well as further expand its LED lighting and backlighting product lines and customer base, said Lextar. These developments will take place under the wing of David Su, who will proclaim status of chairman and CEO while Allen Huang will act as president.
In the past, the firm's backlighting products were mostly for monitor and TV applications but will now also be used in notebook and smartphone applications. Additionally, aside from developing mostly solid-state lighting products such as lamps and board lights, Lextar's merger will give the firm a line of products that also include T5 tube and CCFL lighting applications along with LED bulbs and fixtures.
Also resulting from the merger is an expanded customer portfolio, which gives Lextar OEM businesses in the US and Japan. Lextar will also be continuing to expand its reach in addition to supplying its own industrial design team to provide more value-added services. On the supply chain side, Lextar is enlarging its economies of scale, increasing the firm's access to materials and resources while at the same time improving cost competition.