Taiwanese LED EPI-wafer manufacturer Epistar has vehemently denied claims made by local media Apple Daily that it had laid off more than 100 employees following the shut down of its subsidiary FOREPI’s EPI-wafer fab.

A major Epistar shareholder has demanded for Chinese LED chip manufacturer San’an Opto to withdraw investments in the company, due to the Chinese company’s headhunting activities, according to a recent Economic Daily News report.

Listed Taiwanese LED manufacturer FOREPI and Epistar completed official integration on Dec. 30, 2014, according to an UDN report. FOREPI has become a subsidiary under Epistar, and after an interim shareholder meeting in September, FOREPI will complete integration during 1Q15. After being absorbed by Epistar, FOREPI is expected to profit in 2015.

Epistar is reported to fully integrate with FOREPI before the end of 1Q15, with the possibility of FOREPI’s Chairman Feng-Ren Chien stepping down from the management board, according to a report from the China Times.

Top Chinese LED manufacturer San’an Opto has swapped its shares in FOREPI for leading Taiwanese LED chip maker Epistar shares, the Investment Commission of Taiwan’s Ministry of Economic Affairs (MOEA) announced Tuesday.

Epistar and FOREPI stockholders have approved the proposed merger between the two companies today, according to a report by Cynes.com. FOREPI stocks will be swapped at a rate of 3.448 per Epistar share. 

Taiwan’s Fair Trade Commission recently approved Epistar and FOREPI’s merger.

Major LED EPI-wafer and chip manufacturer Epistar’s revenue was up 30 percent to NT $ 8.13 billion (US $270 million) during second quarter of 2014. Growing backlight and lighting demands have benefited the company, but financial results for first half of 2014 might still be negative, due to huge losses incurred during first quarter, according to a Money DJ report. Third quarter 2014 financial results will be cushioned by the arrival of the peak season, and is estimated to assist the company in maintaining high profits throughout the season. 

The merge between Taiwan’s two largest LED manufacturers Epistar and FOREPI has established the trend of forming alliances in the country’s LED industry, and the dawning of the oligopoly market. Since the two company’s merge on June 30, 2014, FOREPI has received LED lighting OEM orders from Epistar. No further restructures and adjustments have been made so far. What were the actual circumstances behind the birth of the new Epistar? What exactly happened behind the scenes? In this in-depth interview with Epistar Chief Financial Officer and Spokesman Rider Chang, LEDinside probes into the company’s mindset during the recent merge.

Epistar reported good revenue performance in June, benefitting from high backlight and lighting demands, according to the China Times. Consolidated revenue in June reached NT $2.82 billion (US $94.2 million), increase of 0.85 percent MoM, making it the fourth consecutive month with record high revenue. Lextar performance in June was equally good, hitting a single month high of NT $1.36 million. FOREPI reported revenue of NT $500 million in June, up 4.36 percent MoM. 

The merger between LED chip manufacturer Epistar and FOREPI has generated much discussion in the industry. Industry insiders have different views on the trend of large LED upstream manufacturers dominating the market. While foreign investment firms are optimistic the merger will create a win-win situation for Epistar and FOREPI, other market insiders are concerned it will have a negative impact on downstream manufacturers.

Since Epistar’s announced the merger with Taiwan based LED manufacturer FOREPI, the industry has been concerned about rival San’an Optoelectronics (San’an Opto) potential to undermine Epistar’s management.  

Epistar’s acquisition of FOREPI earlier this week rocked the LED industry. Foreign financial institutes have tooted the merger as a win-win for both sides, as it will boost Epistar’s global market shares to 20 percent and production capacity up 30 to 40 percent, according to a United Evening News report. 

Once news broke of Epistar’s acquisition of FOREPI, all eyes turned to China based chip manufacturer San’an Optoelectronics (San’an Opto), eager to see how the company would react. 

Top Taiwanese LED chip manufacturers Epistar and FOREPI have officially merged, the two companies announced at a joint press conference held in Taipei, Taiwan on June 30, 2014. The two companies announced the merger will integrate the two companies resources, production capacity, and staff to meet market demands and improve revenue performances.

Taiwan-based manufacturers Epistar and FOREPI today announced merge plans. Through conversion of shares, FOREPI will become a 100 percent fully owned subsidy of Epistar. The trend of acquisitions within the LED industry will continue in 2014, observed LEDinside, a research division of TrendForce. Epistar’s merger with FOREPI will improve production capacity, cost management, as well as client and product integration. After the merge, the two companies will also be able to jointly resist market threats from Chinese LED chip manufacturer San’an Optoelectronics (San’anOpto). 

Epistar has finally decided to acquire FOREPI, and will be announcing the details of the deal later today, according to several Taiwanese media reports.

San’an Optoelectronics (San’an Opto) has big plans to become a force to be reckoned with both domestically and internationally. The company is expanding production capacity, releasing announcements one after another, according to a Money DJ report.

Market listed companies have released their March revenue reports this week with the LED industry coming out on top, according to an article by Economic Daily News. LED manufacturers had unusually good performance in January and February, a traditionally slack season for the industry. The growth trend continued into the peak season where it picked up pace in March. Order visibility already extended to 3Q14. The second half of this year is anticipated to be smooth for the industry. 

Taiwanese LED chip manufacturer FOREPI announced their fiscal 2013 financial report. The company reported losses and was hit hard during the second half of 2013 when backlight demands dropped sharply. 

Sapphire substrate price uptick has built up momentum for a while, according to a recent Commercial Times report. Sapphire substrate manufacturer’s price quotes for 2Q13 were up 3 percent, but LED die manufacturers have not accepted the price increase demands so price continues to fluctuate, said FOREPI Chairman Chien Fen-ren. 

Flip-chips various features are now also being valued in the mobile application market, said FOREPI Chairman Chien Fen-ren during Leadray Energy’s Taipei office opening ceremony on March 17, 2014.

LED manufacturers cost control pressure for has not eased  as TV retail prices continue to drop. Low priced direct- type LED TVs are projected to become mainstream in 2014. LED manufacturers also plan continual release of low-cost solutions. Taiwanese manufacturers are optimistic about flip chip products ability to expand beam angle and conduct higher voltage electric currents, with Taiwanese manufacturers such as Epistar and Forepi leading the way in introducing flip chips into large sized backlight applications.

Affected by the traditionally low season in 4Q, Taiwan LED chip manufacturer FOREPI utilization rates were down to 60 percent. However, there is a possibility for large-sized backlight demands to rebound earlier than expected, as Korean manufacturers have decided the new TV models for 2014. FOREPI projects utilization rates might return to higher levels in 1Q14.

As the industry enters LED lighting era, Taiwan needs to speed up its smart driver IC network (power control and ballast), which has interchangeable spec and electrical interface, said FOREPI Chairman Chien Fen-Ren at the 2013 Renewable Energy Summit. In the short term, the LED industry needs to prioritize solving electrical specification protocol and integration for drivers and luminary modules to resolve bottleneck situation.

Chinese LED manufacturer San’an Optoelectronic Co. (San’an) has been picking up its pace in internationalization and deployment of business strategies this year. In the LED chip field, the company has become a top international manufacturer with its acquisition of Luminus, with its investments in Taiwanese LED manufacturer FOREPI has greatly improved its competitiveness. In terms of its overall business strategies, the company has set up a lighting sales company, and plans to extend its reach in downstream applications.

Without Taiwan’s Investment Commission approval, Taiwanese LED manufacturer FOREPI’s and Chinese manufacturer San’an Optoelectronics’ (San’an) ownership stake acquisition deal was thwarted. FOREPI’s board of directors approved San’an as a shareholder in private investment in late June, and recently planned to start a new LED company through a joint venture with TCL and Refond. The two approaches show FOREPI’s ambition and strategy in the Chinese LED market.

Last night (July 16), Refond revealed announcement that it cooperates with TCL Group and wholly owned subsidiary of Taiwan-based FOREPI to set up a LED joint venture in Guangdong Huizhou Zhongkai High-tech Development Zone with 200 million Yuan. The new company named "Huarui Optoelectronics Technology (Huizhou) Co., Ltd.", located in Zhongkai High-tech Development Zone, Huizhou of Mainland China, and it has capital of 200 million Yuan, of which, TCL Group is the leading company, holding shares of 51%, about investment of 102 million Yu...

The case that Sanan Optoelectronics takes a stake in Taiwan's Formosa Epitaxy was suspended because the scandal that the financial statements of Sanan are unclear was exposed in this April. Industrial Development Bureau (IDB) of Ministry of Economic Affairs (MOEA) will reconvene the special review meeting, and the results will be handed over to the Investment Commission of MOEA, the cooperative case has not been canceled. Fengren Jane, chairman of FOREPI, pointed out that the schedule of this case is still unclear, and it is still waiting for the res...

FOREPI displayed three newly released products at Taipei International Optoelectronics Week, and FOREPI said that two of the three models adopt Package Free Chip technology the company exclusively developed, namely 3.5 watts / 350 lumens candle light and up to 10-watts / 2000 lumens bulb, and the third product is new chip used in headlights, the current products used in headlights were shipped in small amount in June, and it will begin to be shipped in large volume in July. FOREPI said that the company publicly released in last September that it has developed a...