News

29 June 2010

 

FOREPI raising capital to expand LED capacity

According to a report in Digitimes, to expand its production capacity Taiwanese LED chipmaker Formosa Epitaxy Inc (FOREPI) plans to raise additional capital of about NT$6.4bn (US$162.6m) by issuing up to 150 million new shares. A shareholders’ meeting today is discussing whether this will be via either a public offering or private placement in Taiwan or through the issue of global depositary receipts (GDRs) and convertible bonds.

FOREPI plans to expand production capacity from 43 MOCVD reactors to 81 by the end of 2010. Of the 38 new systems, 13 will be in Taiwan and 25 in China (at its affiliate Jiangsu Canyang Corp, which is due to start production in July). Another 40 will be added during 2011 (including Canyang adding another 25).

FOREPI began shipping to LED lighting device clients in Japan in second-quarter 2010, with initial monthly shipments of a few thousand units, but volumes are expected to increase substantially in second-half 2010, reports Digitimes, noting that shipments include 3W and 7W LED light bulbs and light strips.

For South Korea’s LED lighting market, FOREPI is shipping high-brightness LED chips to chip packaging and module manufacturing partners in the country. The firm also plans to enter the US and Europe markets by fourth-quarter 2011.

With the China government rumored to be modifying its LED street lamp policies from direct subsidization to reimbursing companies at a later date (based on the amount of money saved annually from implementing LEDs), FOREPI reportedly plans to retreat from such projects in Yangzhou, China.

FOREPI points out that, despite uncertainties surrounding subsidies, the LED street lamp market still presents a good opportunity so, as long as it is beneficial to the firm, it will continue to consider future developments.

See related items:

Epistar and Formosa Epitaxy hit new highs

FOREPI to set up China subsidiary, targeting LED lighting market

Search: Forepi LEDs

Visit: www.digitimes.com

Visit: www.forepi.com.tw