+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

Epistar to Buy TSMC's LED Subsidiary

News


Epistar and TSMC have today approved the sale of TSMC Solid State Lighting to Epistar for $25.85 million. After the transaction, Epistar will own 94 percent of the company, and TSMC will exit the LED business. The company will be operated by Epistar and TSMC SSL's current team.

TSMC SSL has recently developed high-efficiency LED lighting products using an innovative Phosphor-on-Die (PoD) chip-scale packaging technology. However, the company has struggled to reach profitability due to oversupply following the massive expansion of the LED industry in the past several years.

As a late entrant, TSMC SSL has also faced difficulties overcoming patent obstacles and establishing sales channels. Epistar is the world's largest manufacturer of LED epitaxial wafers and dies, with patents recognised by the major industry players, cross-licensing with Philips and Toyoda Gosei, and a wide network of sales channels covering customers across the globe.

Speaking on his hopes for collaboration, TSMC SSL chairman Steven Tso said: "I believe that we can reach a win-win-win scenario with TSMC SSL led by Epistar and SSL's present team. Epistar's operations can take off with redoubled strength, the development of the LED industry will accelerate, and consequently TSMC SSL's shareholders and employees will benefit as well."

LED lighting demand is expected to increase significantly between 2014 and 2017, with a rapid increase in penetration rate. Epistar successfully acquired Formosa Epitaxy at the end of 2014 with the goal of obtaining the capacity and talent needed for the next several years of growth.

Speaking on this collaboration, Epistar chairman Biing-Jye Lee said: "We hold an open and positive attitude towards anything that can enhance Epistar's competitiveness and shareholder value, and is beneficial to the development of the LED industry. TSMC SSL's capacity may be far less than Epistar, but by working with TSMC we can be introduced to different thinking, different talent, and different systems from across industries to spark new ideas and strengthen Epistar's future operations."

×
Search the news archive

To close this popup you can press escape or click the close icon.
×
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • View all news 22645 more articles
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: