Toyoda Gosei will own 51% of TE Opto, Epistar will have a 40% share and Twin Hill will own the remaining 9%. The company will have four directors from Toyoda Gosei, two from Epistar, and one from Twin Hill.
The companies say that the joint venture agreement “combines Toyoda Gosei’s leading-edge LED technology with Epistar’s low-cost manufacturing capabilities to expand the partners’ LED sales in the growing market of illumination applications.”
Since 2006, Toyoda Gosei has worked with Epistar and outsourced the production of some of its LED products to Epistar.
TE Opto has an short-term annual sales target equivalent to about YEN 5 billion (about USD 60 million) by the fiscal year to March 31, 2012.