Taiwan-based LED maker Ligitek Electronics yesterday stated it will acquire 90% of the stakes of LED maker O.H. Technology and the two have signed a letter of intent (LOI) for backlight unit (BLU) developments, adding that the agreement will be finalized by the end of August, at the soonest.
Although the utilization rates at O.H. Technology is only 25% at present, the rates will be boosted to more than 50% after Ligitek shifted some of its orders to O.H, Technology, Ligitek said.
Ligitek recently landed orders for outdoor LED bulletin boards from China. In addition, the company is eying the BLU segment and has partnered with three LCD panel makers. Starting from September, Ligitek will begin shipping BLUs for 12.1- and 14.1-inch panels using LED backlighting, market sources indicated. To accelerate its developments in LED BLUs and increase its BLU capacity, Ligitek has decided to buy stocks in O.H. Technology, the sources added.
O.H Technology, a major customer of Ligitek, mainly produces BLUs for 7-inch-and-below panels. The company currently has a NT$108 million capital and its production base is in Dongguan, China, according to the Chinese-language Commercial Times.
Article translated by Emily Chuang and edited by Carrie Yu
