Epistar-Lextar merger plan receives Taiwan approval

LED epitaxial wafer and chip maker Eipstar and vertically-integrated LED maker Lextar Electronics have received approval from Taiwan’s Fair Trade Commission (FTC) for their plan to put both of them under a holding company they are forming through a stock swap deal.

Since both companies have subsidiar in China, the plan is also subject to approval by China’s State Administration for Market Regulation for antitrust clearance. If the plan is approved, the holding company, EnnoStar, will be listed on the Taiwan Stock Exchange in place of both Epistar and Lextar on October 20, 2020.

Epistar expects shipments for mini LED flip-chips used in backlighting to significantly increase beginning October 2020. Epistar will begin to ship mini LED chips used to backlight a 12.9-inch tablet developed by a US-based vendor in fourth-quarter 2020.

To meet demand from China-based clients, Epistar will set up mini LED chip production lines at its two factories in eastern China, with production to begin in 2021. Epistar expects mini LEDs to take up over 50% of its total capacity for blue-light LEDs in 2021.

Epistar has reported consolidated revenues of NT$1.304 billion (US$44.2 million) for August, increasing 15.53% sequentially but decreasing 8.89% on year, and those of NT$8.952 billion for January-August slipped 15.62% on year.

Lextar’s consolidated revenues of NT$916.5 million for August declined 6.83% sequentially but grew 12.36% on year, and those of NT$5.710 billion for January-August fell 7.16% on year.

LED packaging service provider Everlight Electronics has reported August consolidated revenues of NT$1.918 billion, rising 1.56% sequentially and 8.15% on year, and those of January-August reached NT$13.971 billion, up 1.44% on year.

Source: https://www.epistar.com/

Related presentations

Liked this post?

Share it on your social networks