Hon Hai Group sapphire substrate jump the world's top three

Foxconn enhanced light-emitting diode (LED) power, its two sapphire substrate materials, crystal Xin Zhao Jing yesterday (7) announced the merger exchange ratio of 1:1, the transaction amount of approximately 3 billion yuan, after the merger will surpass us, the crystal peak, Taiwan has become the largest, the world's top three sapphire factory.

Interpretation of the industry, the past is Foxconn production cost control terminal in the electronic industrial strengths, in the future LED will be "the opposite", through strengthening the upstream raw material advantages, establish and industry segmentation. After the merger with Zhaojing for the existence of the company, in order to destroy the company for Xin crystal, and UMC group under the sapphire substrate plant Zhaoyuan segment, after the merger will retain the Xin crystal diamond company name, Hon Hai is still the largest shareholder.

LED industry long-term bullish, but the upper reaches of the sapphire substrate materials have been broken by foreign manufacturers in recent years, Taiwan has Ke, UMC, crystal, crystal and other group of Sino US investment, business and the sapphire substrate Foxconn's expansion, vertical integration, is expected to set off the industry's new cyclone.

Foxconn in LED industry for many years, from the previous acquisition of advanced development of LED packaging factory, owned by Eltete is locked LED lamps and lamp. Vertical integration in the LED raw material now, Hon Hai in the LED layout more complete, currently only lack of LED epitaxy.

Hong Haiyuan holds 17% and 15% trillion Xin crystal diamond, crystal diamond and stake, yesterday Xin Zhaojing board respectively through the merger, after the merger with Zhaojing as the company continues to destroy the company, Xin crystal, and the termination of the emerging trading and revocation of public offering, convertible ratio 1:1, Zhaojing will issue a 63 thousand and 720 ordinary shares, with benchmark for December 31st.

Xin Zhaojing is emerging with the diamond company, yesterday the emerging reference price fell 0.98, 0.16 yuan, 44.63 yuan each, to close at 44.92.

Zhaojing in two years ago plans to cut sapphire crystal long, but due to the feed was quite dependent on the international long crystal factory such as Rubincon, in fear of being cut, then the new crystal diamond company Xin, now the two sides have their own development into a day, in the vertical integration of the industry. The two sides decided to merge.

Zhaojing financial director Hong Benyuan said that the Zhaojing master client to Haikou, Zhaojing for the existence of the company, including the merger benefits: the integration of LED sapphire crystal growth, substrate processing and PSS technology, expand business scale, improve competitiveness, and strengthen the cost advantage, increase profit and kinetic energy, the integration of upstream and downstream resources and provide the customers with better price, strengthen overseas development, expand market share.

Zhaojing was founded in 2000, currently with 2 inch sapphire substrate and customized products, 4 products, 6 inch wafer, about 80% more than in the domestic raw materials, sapphire crystal, suppliers including Rubicon, more peaks, Xin Crystal etc.. Xin and diamond Zhaojing is supplier relationships, be made one after favorable listing plan. Otherwise, two independent companies, because of the fear of the proportion of the relationship between people is too high, so that the two manufacturers to enter the capital market Lu Zengtian variables.