GCS Holdings, a pure III-V compound semiconductor wafer foundry announced it sealed an acquisition deal with Chinese manufacturer San’an Opto. San’an Opto will purchase 100% of GCS Holdings’ stake for US $226 million.

San’an Opto released its financial results for the first half of 2015 on August 18, 2015. The company’s sales reached RMB 2.3 billion (US$350 million) with 5.26% growth year on year (YoY). The reported net income available to shareholders is RMB 904 million, reflecting a 35.76% YoY growth.

San’an Opto announced its wholly-owned subsidiary, Wuhu Anrui Opto (蕪湖安瑞光電), has signed the cooperation framework agreement with automaker BAIC Yinxiang Automobile on July 17, 2015.

San’an Opto was granted RMB 230 million (US $37.11 million) subsidy by Torch Hi-tech Industrial Development Zone Committee for 50 MOCVDs the company recently purchased, according to a news report from China Securities Journal.

Leading chip manufacturers including San’an Optoelectronics (San’an Opto) and HC SemiTek Corp. (HC SemiTek) have been turning from 2 inch to 4 inch epitaxial wafers, which industry insiders anticipated to be the upcoming trend in 2014.