Seoul Semiconductor affiliate’s acquisition proposal of Sensor Electronic Technology (SETi) has been approved by the U.S. Department of Defense, according to a report by The Korea Times.

"Seoul Viosys, an affiliate of Seoul Semiconductor, recently secured a 50 percent stake in SETi, including 6 percent as friendly investors, after the U.S. defense ministry approved for the proposal," stated Seoul Semiconductor.

Seoul Viosys logo. (Seoul Viosys/LEDinside)

The significance of the DOD’s approval of the acquisition is it will help the company expand its UV LED business.

Seoul Semiconductor has already incorporated its management rights for the U.S.-based UV LED producer for the first time as a major stake holder by asking SETi to expand UV LED chip output three-folds at its plant in South Carolina.

Seoul Viosys has teamed up with SETi since 2005 to commercialize UV LED chips with wavelengths below 350-nanometers. Yet, the company needed to secure management control for Strategic Business Development and supply expansion UV LED through mass production.

Since SETi’s UV LED chip patents are critical components in the aerospace and defense inudstries, Seoul Viosys had to pass Ministry International Traffic Arms Regulations (ITAR) and to get approval from the U.S. Committee on Foreign Investment in the United States (CFIUS).

ITAR is designed to prevent defense-related technology from falling into the wrong hands. An export license is required for ITAR-controlled dangerous items for which the U.S. government has granted permission to transport or sell to foreign countries or parties.

According to Seoul Semiconductor, Seoul Viosys was established in 2002. Viosys venture company Nitride Semiconductor proposed a co-development and technical cooperation to Seoul Semiconductor company in the long-wavelength UV LED sector (wavelength ranging from 360 nm to 400 nm).

[Editorial Note: The article was last modified on August 4, 2015. Certain content was taken out, due to errors in the original Korea Times report.]