Epistar Corp. board of directors recently approved a proposal to invest US$75 million to set up an epitaxy wafer factory in Guangzhou of mainland China in cooperation with Delta Electronics Inc.
The joint venture calls for total investment of US$210 million, with Epistar set to pay 70% and Delta to pay the remainder.
Epistar is currently Taiwan`s No.1 LED chipmaker while Delta has branched out into LED packaging and lighting manufacturing from power-supply making. Industry executives estimated the joint venture will give a boost to both companies' goal of becoming heavyweight LED lighting suppliers in the mainland.
The joint venture is the two companies' another collaboration deal after their cooperation on high-voltage LED technology.
The Epistar board also approved the company`s after-tax net income for 2010 at NT$5.76 billion (US$192 million at US$1:NT$30), or NT$7.16 per share, spiking a record 2.3 fold year on year. The company`s chairman, B.J. Lee recently said that contracts have inundated the company`s production capacities through April.
