Hon Hai of Taiwan Invests in LED Wafer Ingot Segment

Hon Hai Precision Industry Co, currently Taiwan’s biggest manufacturing conglomerate in terms of revenue, will enter into LED (lighting emitting diode) lighting segment by investing in Alpha Xtal Technology Corp. of Taiwan, which manufacturs sapphire-based wafer ingots, the material for making LED epitaxy wafers.

After acquiring Alpha, Hon Hai can equip itself with integrated capability for LED lighting manufacturing. The company now has LED packaging and lighting module affiliates.

Alpha Chairperson L.L. Gou said that Hon Hai had acquired only a minor ownership in Alpha through a recent capital raising which aimed to fund the company’s expansion plan.

Alpha has had its ingots certified with local expitaxy-wafer makers including Formosa Epitaxy Inc., Tekcore Co., Ltd., Genesis Photonics Inc., Arima Optoelectronics Corp., and Chi Mei Lighting Technology Corp.

Market researcher has forecasted LED output to reach US$8 billion worldwide next year and US$10.8 billion by 2012, with compound annual growth rate posting at 13% to 20%.

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