LED epitaxial wafer and chip maker and packaging service provider Lextar Electronics on October 14 held a shareholders meeting to approve an investment of US$83 million by US-based Cree for a 13.32% stake through subscribing to 83 million new shares via private placement, according to Lextar.
While Cree focuses on high-power LED chips, it has high demand for mid-power models for use in LED lighting, this is the main reason behind its stake investment, Lextar chairman David Su said. Cree will account for a large portion of Lextar's production of mid-power LED chips for at least three years, Su indicated. In addition to the steady orders, Lextar will have access to Cree's patented technologies, Su noted.
Shareholders also approved the expansion of Lextar's registered capital from NT$7 billion (US$216 million) currently to NT$9 billion because the company's paid-in capital has increased from about NT$ 5.4 billion to about NT$7 billion.
