On both sides of the first LED shares has released 500 million stake in Sanan optoelectronics canyuan

The first stake in the two sides of the LED (light-emitting diode) industry shares released. Yesterday, China, the largest LED factory Sanan optoelectronics announced that it will spend NT $2 billion 352 million (about RMB 500 million), to 19.6 yuan per share NT provisional price, get China Taiwan second LED factory canyuan photoelectric 19.9% stake; three canyuan will become the largest shareholder.

If the equity case has passed, the amount of capital to invest in Taiwan will be a case of high land. Previously, the amount of land to invest in Taiwan is low, open 3 years after only $3 investment, and more emphasis on the service industry, this is the first time a well-known mainland technology companies to invest in taiwan.

Three and canyuan is on both sides of the first cooperation LED shares, but due to the current LED solar industry step footsteps, market in price competition, the industry is not good I am afraid the situation is difficult to reverse in the short term. Relevant personage thinks, this pile of shares has impact on stock prices is still focused on stocks, the overall LED group lift effect co..

Taiwan LED factory on the cooperation case optimistic, cross-strait LED factory has over blind expansion, now can not integrate resources, duplication of investment, vicious competition from the past to cooperation, have significance for both sides of the LED industry, also contribute to the establishment of industrial order.

Yesterday, canyuan board through this private placement, three will become the largest shareholder of the company legal person, the proportion of shares over the existing largest shareholder of mitsui.

Canyuan and Xiamen will be held in the share subscription agreement signing ceremony today, three chairman Lin Xiucheng and general manager Lin Zhiqiang has arrived in Taiwan. Lin Zhiqiang said, with the Taiwan Manufacturers Alliance, three next strategy will be to get into the international market.

LEDinside view

Through the way of private investment in three canyuan, on the surface, the cash position canyuan account is not enough, not because there is demand for funds and open for three shares. From a market perspective, three and canyuan is seeking their stable products for the sea, the LED grain production line resources to find a better way.

In fact, canyuan in October 2012 has just announced the synthesis and Japanese giant TOYOTA (TG) cross license the patent LED, canyuan proof in the LED patent layout has a certain degree of effort in the development of overseas LED market, which is benefit to gem circle.

The three, the strategy alliance and canyuan, help the company to expand sales in the Taiwan market LED products to overseas market visibility, whether can also help, this time to be examined.

Both sides of the LED industry in fact, in terms of competition, cooperation has been multi-faceted development of different areas. The LED epitaxial field, is generally a competitive situation. The technical aspects of the competition and poaching war, emerge in an endless stream in this industry. Three and canyuan can become a form of cooperation, and canyuan to three shares, on both sides, there must be a profitable opportunity for both sides to each other, and to avoid price competition consumption, but also to be the overall follow-up effect of fermentation.

As a result, canyuan can borrow from the three into Chinese lighting pathway, and three canyuan distribution of LED products in the future the proportion, and how to borrow from the product specifications and market positioning to avoid price competition, it is worth attention.