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SDK and Toyoda Gosei JV to accelerate GaN LED business

While the JV will focus on gallium nitride LEDs, SDK will concentrate on the production of LED chips made from other materials such as aluminium indium gallium phosphide and gallium arsenide

Japanese firm, Showa Denko K.K. (SDK) is splitting its business in GaN-based blue LED chips to form a new joint venture with Toyoda Gosei.

SDK will transfer 70% of shares in the new company, tentatively be called TS Opto Co., Ltd., to Toyoda Gosei by the end of this year.

The JV will focus on the production and sale of GaN-based LED products and will be established at SDK's plant in Yawata Kaigan Dori, Ichihara City, Chiba Prefecture.

SDK is already cooperating with Toyoda Gosei, a developer and marketing of GaN LEDs. By establishing a joint venture with Toyoda Gosei for the GaN LED business, SDK will further strengthen relations between the two companies and expand overall supply capacity. At the same time, research and development at SDK will focus on improving LED brightness and production efficiency.

In the LED business other than in GaN LED chips, SDK will continue its independent operations. The firm is currently producing and selling a wide variety of LED chips, including those based on AlInGaP, GaAs, GaP and GaN.

The new company is scheduled to be established in December 2012 and the intended capital at the time of the formation is planned to be Y490 million (USD $6.05 million). Seventy percent of the JV is to be owned by Toyoda Gosei and the remaining 30 percent by SDK.
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