Taigu and Seoul Semiconductor Joint Venture to Establish New Company

Pan-Guangzhou Group's LED upstream epitaxial plant Taigu pointed out on the 16th that it will establish a new company with Seoul's largest LED company, Seoul Semiconductor, the world's eighth largest manufacturer, and Seoul Optodevice, its packaging company.

With the increase in LED TV shipments, Seoul Semiconductor's orders for Taigu are expected to grow significantly in the future. The legal person pointed out that this news is expected to hit a strong shot for the LED group's share price performance.

Taigu pointed out that in order to protect patents, Seoul Semiconductor and Seoul Optodevice will hold about 51% of the joint venture company, Taigu holds 49%, and the joint venture company initially plans capital of NT$60 million. After the board of directors passed yesterday, The company will be involved in the establishment of the company in the near future, and it is expected to start operation in April at the earliest.

Seoul Semiconductor was originally the single largest customer of Taigu, accounting for less than 20% of revenue last year. In 2009, it also established a joint venture with Guangguang, which is now Pan-Guangzhou Group. Currently, Seoul Semiconductor is also the largest customer of Guang-Guang. The holdings are also 51% for Seoul Semiconductor and 49% for Seoul.

It is understood that Seoul Semiconductor's LED supplier for Samsung, due to the speed of its own MOCVD machine expansion is not ready to put into production, the first quarter of this year began to rush to Taiwan's upstream epitaxial plant urgently capacity, including Guangzhou, Thailand, Yuyuan and others have been chasing the goods. As Seoul Semiconductors watched the LED TV boom this year, it established a joint venture with Taigu, a supplier, to ensure the supply of epitaxial and die.

Taigu said that the main cooperation mode with Seoul Semiconductor is to sell crystal chips, and some of them operate in the form of foundry. After the joint venture between the two companies, Seoul Semiconductor will grow significantly in both orders and OEMs. .

Seoul Semiconductor's products in Taigu and Guangzhou Gallium are mainly high-brightness blue light. Taigu said that the cooperation between the two companies will also increase the downstream estuary for Taigu, and also raise the high-priced blue LED products. The volume of goods; for future cooperation between the two sides, such as strategic alliances, etc., Taigu said that this possibility is not ruled out.

Taigu continues to expand production this year, and MOCVD is expected to increase by 20 units. The legal person's estimated production capacity will grow by 60% compared with last year.