Taipei, Friday, March 24, 2017 12:36 (GMT+8)
scattered showers
Taipei
18°C
Digitimes Research: Epistar-Forepi merger to help stabilize LED industry
Jessie Lin, DIGITIMES Research, Taipei [Thursday 3 July 2014]

Taiwan-based LED maker Epistar announced a merger with Formosa Epitaxy (Forepi) on June 30, 2014, with the former aiming to fully acquire the latter and become the surviving company. Epistar explained that the merger is meant to improve its strengths in competition for first-tier international lighting companies' LED orders.

Epistar said demand from first-tier international lighting vendors has been strong, resulting in a 30% shortage in the high-end LED segment.

Epistar's merger with Forepi will immediately resolve Epistar's capacity shortage problem and greatly improve Forepi's product mix and utilization rates. Prior to the merger, Forepi's LED epitaxial wafer production value per unit was 30.7% lower than that of Epistar, which shows that Forepi was receiving orders at prices lower than the market average.

With Forepi starting to fulfill orders coming from Epistar in July, Forepi is expected to see improvements in profitability. With technological assistance from Epistar, Forepi's production capacity from its existing equipment can go up by 20-30% to reach a monthly output of over 400,000 units.

The merger will also create the largest supplier in Taiwan and in the world. Digitimes Research's figures show that Epistar and Forepi's combined capacity accounted for 65.6% of Taiwan's blue LED segment in the second quarter of 2014.

By the end of 2014, the number of Epistar and Forepi's InGaAlP and blue LED manufacturing equipment will reach 500 sets, double those of San'an Optoelectronics and accounting for 22.6% of global LED chip capacity.

In addition, the merger is expected to have further influence on the LED industry in the future. Since Epistar and Forepi are pushing the strategy of "run as one company," their decision is expected to help stabilize the industry and minimize price competitions.

Content from this article was part of a complete Digitimes Research Chinese-language report that has not yet been translated into English. If you are interested in an English version of the report or wish to receive more information about the report, click here to contact us and we will get back to you as soon as possible. Digitimes Research also provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

Realtime news
  • Nintendo expects to ship 20 million Switch devices in first year

    IT + CE | 9min ago

  • Lenovo plans to offer 3-5 Mods smartphone accessories a quarter

    Mobile + telecom | 36min ago

  • China Mobile 2016 net profit up 0.2% on year

    Mobile + telecom | 1h 7min ago

  • TEEMA forms automotive alliance

    IT + CE | 1h 54min ago

  • Tencent 2016 net profit up 42.4% on year

    IT + CE | 1h 56min ago

  • Taiwan February manufacturing production index down on month, up on year, says MOEA

    Bits + chips | 1h 58min ago

  • Audio IC firm C-Media 2016 profits fall to 3-year low

    Bits + chips | 1h 59min ago

  • SPIL to pay NT$1.75 cash dividend for 2016

    Bits + chips | 2h 1min ago

  • TSMC to start installing equipment at Nanjing fab in 2H17

    Bits + chips | 2h 5min ago

  • Win Semi to deal out cash dividend of NT$4.50 for 2016

    Bits + chips | 2h 7min ago

  • Samsung, eSilicon tape out 14nm network processor with Rambus 28G SerDes solution

    Bits + chips | Mar 23, 21:14

  • Apple iPhone 6s tops list of best-selling smartphones for 2016, says IHS

    Mobile + telecom | Mar 23, 21:11

  • ASE says no plan to set up local site in US for packaging services

    Bits + chips | Mar 23, 21:09

  • SAS suffers net loss per share of NT$2.77 for 2016

    Before Going to Press | Mar 23, 20:58

  • Digitimes Research: 3G/4G becomes mainstream in India in 2016-2017

    Before Going to Press | Mar 23, 20:57

  • Everlight Electronics nets NT$4.13 per share for 2016

    Before Going to Press | Mar 23, 20:54

  • Chunghwa Telecom procures 4G equipment from Nokia

    Before Going to Press | Mar 23, 20:50

  • AUO procures TFT-LCD equipment

    Before Going to Press | Mar 23, 20:49

  • India market: Handset sales proportion from online channels rises to nearly 35%

    Before Going to Press | Mar 23, 20:49

  • Systex nets NT$4.50 per share for 2016

    Before Going to Press | Mar 23, 20:46

  • Bright Led Electronics to hand out 2016 dividend of NT$0.80

    Before Going to Press | Mar 23, 20:45

  • GMT to deal out 2016 dividend of NT$5

    Before Going to Press | Mar 23, 20:43

  • InterServ International to not hand out 2016 dividend

    Before Going to Press | Mar 23, 20:33

  • Oppo actively tapping overseas markets

    Before Going to Press | Mar 23, 20:32

Pause
 | 
View more

Global notebook shipment forecast, 2017 and beyond

RESEARCH EXTRAS | Jan 25, 14:34

Digitimes Research estimates that 2016 was another down year for the global notebook market, with shipments dipping below 150 million. While the market will continue shrinking in 2017, the drop will be much less dramatic, as Windows 10 adoption in the enterprise...

Global AP demand forecast, 2017-2020

RESEARCH EXTRAS | Jan 16, 12:01

Digitimes Research expects global application processor (AP) shipments to increase more than 8% in 2017 and surpass the 1.9 billion mark, with smartphones remaining the main application. After slumping in 2015, Qualcomm returned to form in 2016 and will continue...

Global tablet market – 4Q 2016

GLOBAL TABLET | Mar 9, 14:10

In the fourth quarter of 2016, global tablet shipments reached 52.25 million units, showing on-quarter growth of 14.3%.

Taiwan handsets – 4Q 2016

TAIWAN MOBILE DEVICE | Mar 3, 14:43

Taiwan's presence in the global handset market continues to shrink. Its share of global shipments is expected to drop below 2% in the first quarter of 2017.

China smartphone AP shipments – 4Q 2016

CHINA SMARTPHONE AP | Feb 24, 14:04

Digitimes Research forecasts smartphone AP shipments to China in first-quarter 2017 will show an on-quarter drop of 15.9%.

China smartphone touch-panel industry 2016 forecast
Wireless broadband developments in Southeast Asia markets
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.