Jingdian accelerates LED car lighting layout 512 million Taiwan dollars into Dominant

According to the Taiwan Business Times, in order to expand the seaport, LED leader factory Jingdian (2448, TW) announced yesterday that it intends to acquire 11 million shares of Dominant Opto Technologies' common stock in Malaysia LED packaging factory, with a total amount of approximately RM64.85 million (equivalent to new NT$512 million) and signed an investment agreement.

It is understood, Dominant Opto Technologies in LED automotive lighting market is an important supplier, Epistar can take roots in automotive lighting. Dominant Opto Technologies Malaysia SMT LED manufacturers, established in 2000, is the major application markets automotive lighting, customers include the world's major automakers. At present, the production bases are in Malaysia and Laos, and the sales bases cover the United States, Germany, Japan, South Korea, Shanghai and other places, and serve the car customers nearby.

Jingdian invested NT$512 million and acquired 11 million shares of Dominant Opto Technologies common stock, holding approximately 10% of the shares. Jingdian said that this investment is a concept of virtual cooperation, mainly strengthening the strategic cooperation between the two parties, promoting closer cooperation between the two parties and accelerating the introduction of new products into the market. The investment amount is not large, and Jingdian will not be involved in Dominant's operation, but it is purely strategic investment.

The new round of layout of Jingdian is to find a new niche market for the current LED backlight and general lighting market.

Previously, Jinghua President Jou Ming-jiunn revealed that due to the increasingly fierce competition, all LED chip manufacturers in Taiwan are expected to merge into one or two manufacturers, as will China. In addition, Jou said that only five to six LED chip manufacturers are expected to survive worldwide.

Jou said that although the LED backlight market has become saturated, LED lighting demand is still growing. However, product prices have been falling. He said that the price of LED bulbs has dropped by 40% to 50% so far in 2015.

Jou said that as international suppliers are designing new LED lighting products, they will be launched in March 2016. Epistar expects shipments of the company's mid- and low-power LED chips and COB (board-on-board) devices to increase significantly from December 2015 to February 2016.

As for LCD TV backlighting, the company expects demand for CSP (chip-scale package) flip-chip LED devices will begin to increase in 2016.

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