Epistar Corp, Taiwan’s largest LED maker, yesterday signed a strategic cooperation agreement with Nan Ya Photonics Inc, the LED unit of Taiwan’s Formosa Plastics Group, according to an article on Taipei Times.

The agreement covers co-operation in technology and investment, and is aimed at sharing resources, helping enhance operational efficiency and boosting shareholders’ interests, according to Epistar’s filing to the stock exchange yesterday. The partnership will also help the two companies to expand production capacity and reduces costs through joint efforts in research and development, it said.

Epistar plans to initially invest NT$1 billion (US$31.1 million) to participate in Nan Ya Photonics’ recapitalization scheme, the article said. The companies also plan to hold stakes in each other, but both declined to elaborate on the scale of the investment or stake.