At its latest board meeting,Tokyo-based chemical manufacturer Showa Denko K.K.(SDK)has decided to split off and transfer its gallium nitride(GaN)LED epitaxial wafer and chip production business to its subsidiary TS Opto Co Ltd(which was founded at the end of September at SDK's plant in Ichihara City,Chiba Prefecture).
In April,to strengthen the business,SDK reached a basic agreement with fellow Japanese GaN LED maker Toyoda Gosei Co Ltd to establish a joint venture.Now,as well as transferring its GaN LED business to TS Opto(effective 1 December),SDK has decided to transfer 70%of the common shares in TS Opto to Toyoda Gosei on the same date,making TS Opto a joint venture between SDK and Toyoda Gosei.At the time of the transfer,TS Opto will deliver 19,400 common shares to SDK,in exchange for inheriting the rights and obligations pertaining to SDK's GaN LED business.
SDK's GaN LED business had net sales of JPY5322m in 2011.While existing sales activities will not be transferred to TS Opto,SDK itself will stop selling GaN LEDs as of the 1 December date for the business'transfer to TS Opto.
