Facing severe LED supply shortages, Taiwan`s major LED chipmakers are moving to carry out capital increment plans to finance output expansion to meet explosively increasing demand this year.
For example, the board of Epistar Corp., also known as Taiwan`s largest LED epitaxial wafer supplier, has approved private placements of less than 300 million shares this year, looking to raise nearly NT$26 billion US$812.5 million at US$1: NT$32 in cash, the largest amount in the line.
In the meantime, Formosa Epitaxy Inc. has planned to issue around 150 million new shares domestically for capital increment, or issue global depository receipts GDRs or launch private placements at home and abroad, in a bid to raise around NT$6.4 billion US$200 million in cash. The firm once completed a capital increment plan and raised NT$2.358 billion US$73.68 million this March.
To accelerate its business deployment in LED lightings and large-sized LED backlights, Genesis Photonics Inc. has actively been expanding production capacities at its factories in Taiwan and mainland China. At an annual shareholders` meeting slated for June 30, shareholders will discuss a plan on issuing less than 100 million new shares for capital increment.
The firm has kicked off construction of its second plant in Tainan, southern Taiwan, since early May, and will complete installation of 10 sets of MOCVD metal organic chemical vapor depositions equipment in the new plant by the end of this year, adding to the number of its own MOCVD equipment to 53.
Also, AU Optronics Corp.`s affiliate Lextar Electronics Corp. will also issue less than 50 million shares for capital increment to support capacity expansion at its factories in Taiwan and mainland China this year.
With Taiwan`s major LED chipmakers, also including Tekcore Co. and Tyntek Corp., to urgently expand output, the total funds raised by them in the second half of this year may exceed NT$40 billion US$1.25 billion according to market observers.
