Electronics Production | February 22, 2007

LED appears to be very important to Foxconn

Will Foxconn increase its interests in the LED technology to pull more operations of that character into its ODM business? Well, many things indicates this development.
Hon Hai Precision Industry Co., Ltd.(Foxconn) appears to become a major financer of Taiwanese light-emitting diode (LED) startups because of its plans to plow capital into many of the makers through subsidiaries.

Foxsemicon Integrated Technology Inc., which is a subsidiary of Foxconn, will likely acquire all of the shares in a $9 million capital-increase project launched by High Power Opto Inc., which was founded by K.S. Huang, the former chairman of LED maker United Epitaxy Co., Ltd.

Also, Foxsemicon is reported to likely put money into Advanced Optoelectronic Technology Inc. in the latter's private-equity subscription project to raise $36 million.

According to analysts Foxconn plans to muscle into LED area by systemically acquiring packagers excluding Lite-On Technology Corp. and Everlight Electronics Co., Ltd. The company's advantage in entering the field is its long-established mold-building and thermal-dissipation capabilities.

Taiwanese industry analysts pointed out that Foxconn may help the global development of the LED technology by its large investments thanks to its abundant resources. They estimated the company's involvement would help pare down the cost of an LED MR16 lamp to around $6 from current $9.


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