Taiwan-based LED chipmaker Formosa Epitaxy will continue expanding capacity, according to company chairman Frank Chien. The firm has been considering the possibility of enlisting investments from China.
Market observers expect China-based LCD panel maker BOE Technology to be one of the firms to take a stake in Formosa Epitaxy. However, Chien declined to comment on rumors about partnership with BOE.
Taiwan's Ministry of Economic Affairs recently announced a policy to let China-based funds to invest in Taiwan's LED supply chain. Chien noted that cooperation between Taiwan and China is a must, and Taiwan-based firms have set up plants in China, meaning there have been only one-way investments in the past. Now, added Chien, Taiwan's government is willing to open the local LED industry to China investors and create jobs in Taiwan. The firm is willing to consider the option, said Chien.
The firm announced a plan to increase capital through private placement for a maximum of 60 million shares in March 2012, with an aim to add strategic investors that could expand the firm's distribution channels. Chien pointed out that if necessary, the firm will consider raising the number of shares for this private placement. The capital injection is expected to complete by end of 2012.
Currently, the management team of Formosa Epitaxy owns 30% of all company shares while Japan-based strategic partner, Mitsui, owns 15% and is the firm's largest single shareholder.
Chien expects revenues from LED lighting in 2013 to account for 40% of total revenues. In addition, Formosa Epitaxy plans to enter Europe and US markets.
Formosa Epitaxy recently introduced LEDs with high brightness of 230lm/W in Shenzhen, China, as the firm hopes to strengthen its footing in China's market.
Frank Chien, chairman of Formosa Epitaxy
