Formosa attracts Mitsui to become its largest shareholder through private placement

Taiwan-based LED chipmaker Formosa Epitaxy has announced that Japan-based Mitsui & Co will become its largest shareholder with a 15% stake through private placement.

Mitsui will purchase 74.693 million shares, while LED packaging house Unity Opto Technology will increase its investment and purchase 15.307 million of stake.

Formosa will raise about NT$3.2 billion of funding in total, different from fellow chipmaker Epistar, who mostly focus on expanding capacity. Formosa continue to expand its development vertically and increase export demand for the company.

Based on the roadmap of Formosa and Mitsui, the short-term results of the investment will focus on LEDs for monitor and TV back lighting, lighting market for mid-term effect and automobile market for long-term effects. The cooperation with Mitsui will focus on the China and Japan market.

Mitsui has a huge business network with business involving in the monitor and automobile industries. Most expect they especially focus on development in Japan, through Mitsui's business network and industrial experience. Formosa also expects to attract more strategic partners thought its cooperation with Mitsui.