Local LED chipmaker Epistar Corp (晶電) said on Saturday it would join forces with Delta Electronics Corp (台達電), the world’s largest switching power supplies provider, to set up an LED wafer and chip plant in Guangzhou, China, to take advantage of the growing global green-energy sector.
Epistar said the two partners would invest a total of NT$3.63 billion (US$124.4 million) in the first phase of the new plant’s development, with Epistar to hold a 70 percent stake and Delta Electronics to own the remaining 30 percent.
The Guangzhou plant is expected to engage in the -development, -manufacture and sale of upstream LED wafers and chips after it begins operations next year.
In the second phase of the development, new partners will be sought from downstream LED--related firms, Epistar said.
The facility is not the first joint venture between Epistar and Delta Electronics. They have previously partnered in the development of LED lighting products that helped them secure orders from major lighting manufacturer Munich-based Osram.
Delta Electronics entered the LED lighting business in 2009 and now ships products to Europe, the US and China.