Delta, Epistar Set Up LED Joint Venture in Guangzhou, China

Taipei, Feb. 16, 2011 (CENS)--Delta Electronics Inc., a leading Taiwanese manufacturer of power supplies, and Epistar Corp., Taiwan's largest LED chip maker, have announced establishment of a joint venture in Guangzhou, southeastern China, marking their entry into LED epitaxy business.

The joint venture has a paid-in capital of US$125 million, with Epistar griping a 70% stake and Delta the remainder, and specializes in production of LED epitaxial wafers and chips for use in lightings and backlights.

In fact, Delta has actively deployed its business in the LED sector by investing in LED packaging firms as well as manufacturers of LED thermal dissipation components and modules and driver ICs since three years ago. Having received inquiries for its LED streetlights from Chinese clients, Delta decided to join hands with Epistar to set up the joint venture to achieve a truly integrated supply chain.

As some of its independently developed LED products have been ready for volume production, Delta indicated that it's imperative to secure stable supply of LED chips with reliable quality. This promoted Delta to cooperate with Epistar on the joint venture, so as to take advantage of the latter's cutting-edge manufacturing capabilities and technical patents to accelerate its foray into the segment for LED applications in China.

Optimistic about the prospects for Delta's LED application business, Epistar also noted that the cooperation will help strengthen its leading position with enhanced downstream presence in the LED industry, and allow the partner to gain solid ground in the segment for LED lightings in the future.

Accordingly, the chairman and the general manager of the joint venture will both be dispatched from Epistar.