Formosa Epitaxy, BOE to ink partnership deal.
Taipei, Sept. 26, 2012 (CENS) -- Formosa Epitaxy Inc. (FOREPI) is reported to sign a deal soon to enter into alliance with BOE Co., Ltd. by allowing BOE to hold part of its stocks.
This could become another partnership deal between Taiwan and mainland China's LED sectors involving stock investment after San'an Optoelectronics Co., Ltd. was reported to invest in Genesis Photonics Inc.
Industry executives pointed out that BOE has branched out into LED lighting from TV manufacturing, needing a quality LED sources not only for its TV backlights but also for its lighting fixtures. Reported to secure a steady supply of quality devices, the mainland's TV giant decided to invest in FOREPI.
Informed sources pointed out that the two companies are vigorously pushing for the cooperation deal as they are eager to co-develop next-generation LED backlights for TVs.
LED packager Unity Opto Technology Co., Ltd., FOREPI's prime shareholder, will join the cooperation by using a factory in Beijing, which is still under construction, to produce packages for BOE's lighting fixtures.
According to market research firm DisplaySearch, BOE began replacing AU Optronics Corp. (AUO) of Taiwan in May this year as the mainland's No.2 LCD (liquid crystal display) panel supplier since Sept. last year, when its 8.5-generation panel factory came on stream.
As of July this year, the 8.5G production line had run at full capacity with defect-free yield rate of 94%. While its 6G facility in Hefei of Anhui Province and 5G line in Beijing are also inundated with orders, the company estimated its operation to swing to a profit in the fourth quarter from loss.
As LED epitaxy wafer manufacturers in the mainland have sprung up like mushroom after the rain, BOE's seeking partnership with a Taiwanese epitaxy wafer maker has incurred questions. People familiar with the company's plan pointed out that the mainland's epi-wafer makers remain in low quality and low defect-free yield.
BOE chooses FOREPI as its partner in consideration of the Taiwanese company's quality and past cooperation with LCD makers Chimei Innolux Corp. and Samsung.
FOREPI, Unity and BOE and Their Operation Description
Operation FOREPI Unity Industrial sector LED epi-wafer making LED package making Capital NT$4.8B. NT$3.3B. 1st Half 2012 revenue NT$2.37B. NT$2.8B. 1st Half 2012 EPS -NT$0.28 NT$0.4 Operation BOE Industrial sector TFT LCD panel and LED lighting making Capital RMB13.5bn (an equivalent of NT$64.2bn) 1st Half 2012 revenue NT$9.6bn (an equivalent of NT$45.6bn) 1st Half 2012 EPS -RMB0.06 Sources: the companies
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|Publication:||The Taiwan Economic News|
|Date:||Sep 26, 2012|
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