LED Chipmaker Epistar Has Plans to Completely Take Over Subsidiary Huga Optotech

Aug 16, 2012

Tags: LED Chip

LED chipmaker Epistar has plans to completely take over subsidiary Huga Optotech through a share swap.

Taiwan's largest chip maker, Epistar, has announced it will completely take over subsidiary Huga Optotech through a share swap in which one Epistar share will be exchanged for 4.85 Huga shares. The merger will take effect on December 28, 2012.

In July of 2010, Epistar took a 47.88% stake in Huga Optotech. The new deal will expand Epistar's registered capital to NT9.1 billion (USD303.3 million) from NT8.6 billion currently. Epistar currently holds a 50.85% share in Huga.

Huga has a production capacity of 150,000 units of 2-in equivalent epitaxial wafers a month, and the company is currently running at 70% of its capacity. Meanwhile, Epistar has a capacity of 330,000-340,000 epitaxial wafers per month.

After the merger, Huga's production lines will focus on the production of low-power LED chips, while those of Epistar's will be responsible for high-power LED chips.

Synergistic effects of the merger are likely to take place in the second quarter of 2013, said Epistar.

Source: http://ledsmagazine.com/news/9/8/14

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LED chipmaker Epistar to take over Huga Optotech in share swap

Topics: Lighting