Taipei, Wednesday, August 5, 2015 02:37 (GMT+8)
partly cloudy
Taipei
26°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 blog post was provided by the Digitimes Research Tracking team, which focuses on shipment data and market trends in the global mobile device supply chain. Digitimes Research provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, China Touch Panel, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

Realtime news
  • Giga Solar Materials July revenues hit record for 4th time straight

    Before Going to Press | 5h 6min ago

  • China makers in discussions with vendors for 6-inch 4K AMOLED panels

    Before Going to Press | 5h 7min ago

  • Gamania posts 1H15 net EPS of NT$2.28

    Before Going to Press | 5h 8min ago

  • Digitimes Research: Taiwan handset shipments to remain flat in 2H15

    Before Going to Press | 6h 11min ago

  • Aces Electronics adjusts model of cooperation with MEC Imex

    Before Going to Press | 6h 37min ago

  • Posiflex Technology nets NT$3.94 per share for 1H15

    Before Going to Press | 6h 50min ago

  • MSI faces increasing competition from notebook vendors for gaming notebooks

    Before Going to Press | 6h 52min ago

  • Danen Technology July revenues inch up on month

    Before Going to Press | 6h 53min ago

  • Taiwan market: FET offers business-use instant messenger

    Before Going to Press | 6h 53min ago

  • Solartech Energy July revenues down sequentially

    Before Going to Press | 6h 56min ago

  • Canon hiking automation of digital camera production, says Nikkei News

    Before Going to Press | 6h 56min ago

  • Kaneka offers N-type a-Si thin-film PV module with energy conversion rate of 24.52%

    Before Going to Press | 6h 56min ago

  • Acer reportedly lands orders for servers from TSMC

    Before Going to Press | 6h 57min ago

  • VIS looks to 9-14% revenue drop in 3Q15

    Before Going to Press | 6h 58min ago

  • WT Micro expects 3Q15 sales to drop up to 4% or rise slightly

    Before Going to Press | 6h 58min ago

  • Giantplus reports 2Q15 performance

    Before Going to Press | 6h 58min ago

  • JOLED planning to invest US$161 million in new OLED research facilities, says reports

    Before Going to Press | 6h 58min ago

Pause
 | 
View more

Display panels for wearable devices: Market overview and forecast through 2017

RESEARCH EXTRAS | Jul 23, 12:15

The wearables market is a growing focal point for many vendors and players in the display panel supply chain. This Digitimes Research Special Report looks at developments in panel applications in the wearable industry, with a specific focus on panel makers in...

Developments in the UV LED industry

RESEARCH EXTRAS | Jul 16, 18:28

As white LED applications are becoming more widely accepted and common in the market and China makers push more price-competitive solutions, the 2015 global high-brightness LED output value is expected to only grow 7.5% on year. It is not surprising that in a...

Taiwan small- to mid-size LCD panels - 2Q 2015

TAIWAN LCD PANEL | Aug 4, 16:14

Handset applications have been the main output for Taiwan makers' small- to medium-size panel production. But the makers are shifting their focus from feature phone panels to smartphone ones.

Taiwan LCD monitors – 2Q 2015

TAIWAN DISPLAY SYSTEM | Jul 30, 15:17

Taiwan's LCD monitor makers have been dogged by a downturn amid a weakening PC market. Competition from Korea and China players has also increased.

Taiwan notebooks - 2Q 2015

TAIWAN MOBILE DEVICE | Jul 24, 15:33

The global notebook market remained sluggish in the second quarter of 2015. The seasonal pattern that has governed the notebook market previously will not appear in 2015, with Taiwan makers set to see on-year declines in the shipments during the second half of...

Developments in the UV LED industry
2015 China smartphone panel trend forecast
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.