LED Chipmakers Have Announced Plans to Distribute Restricted Shares

LED chipmakers Epistar, Genesis Photonics and Huga Optotech have announced plans to distribute restricted shares ranging from 5-15 million units to their employees with an aim of preventing employees from being raided by rival LED companies in China. China's LED market at present is expanding rapidly and its government is about to finalize plans for LED lighting subsidies that will be distributed to LED firms as well as throughout major cities in China to replace traditional lighting. Industry sources said that as this is occurring local Taiwanese talent is being sought out by China firms, which could be hazardous to Taiwan LED firms in the future. In April 2012, the operating rate for LED chip manufacturers in China increased 10 percentage points compared with 2011 while prices for LED lighting fixtures have dropped, indicating growth of the LED market in China. Amongst Taiwan and China's rivalry in the LED market, firms from both sides have also formed an alliance in China to increase LED sales and further spread awareness of the lighting on both sides. Source: DIGITIMES