China-based LED epitaxial wafer and chip maker Elec-Tech International has been seeking strategic alliances with Taiwan-based fellow makers, with Genesis Photonics being the most likely target, according to industry sources in Taiwan.
Elec-Tech has applied with a local government in China to subsidize its procurement of 200 MOCVD sets and has purchased 80-90 units of which 50-60 are in operation, the sources indicated. In order to introduce competitive LED technology and reach the subsidization goal of 200 MOCVD sets, Elec-Tech has looked to partnerships with Taiwan-based LED chip makers, the sources said.
The China market accounts for 50% of Genesis' total revenues, and Japan 40%, the sources noted. In addition, Genesis has not progressed well in expanding production capacity at its factory in Kunshan, eastern China, the sources indicated. It is reasonable for Genesis to partner with Elec-Tech because LED lighting demand is going to take off and the cooperation could complement its R&D capability and manufacturing technology with Elec-Tech's marketing strength to tap China's LED lighting market, the sources pointed out.
