LED Industry News: TSMC, LG, Cree, GT Solar, CRS Electronics
TSMC plans to spin off its SSL business, LG Display has ended an LED chip supply deal with Cree, GT Solar has received a huge order from a Chinese company, and CRS has completed a private equity financing round.
The Board of Directors of TSMC (NYSE: TSM), the Hsinchu, Taiwan-based semiconductor manufacturer, has approved a proposal to transfer the company’s solar business and its solid-state lighting (SSL) business into two newly-established, wholly-owned subsidiaries.
Recently, TSMC invested in new LED manufacturing lines. The company now plans to transfer its SSL business at a value not exceeding NT$2.8 billion to serve as initial paid-in capital for TSMC Solid State Lighting Ltd.
TSMC says that the establishment of these two subsidiaries is aimed at motivating entrepreneurship and facilitating business specialization to strengthen overall competitiveness and operational efficiency.
GT Solar receives huge order
GT Solar International, Inc. (NASDAQ: SOLR) has received an order for multiple sapphire crystal-growth furnaces totaling $218.9 million from Guizhou Haotian Optoelectronics Technology Co. Ltd (HTOT).
“Our entrance into the LED market offers a new strategic growth opportunity for our company and Guiyang City as well as the Guizhou region of China,” said Hao Xu, chairman of the board of Guizhou Industrial Investment Group. “Our new sapphire production facility will help to stimulate economic growth in the region and establish HTOT as a leading supplier of material to the LED industry.
LG ends chip supply agreement with Cree
According to an article in The Korea Times, LG Display has terminated its LED chip supply contract with Cree.
In January 2009, LG struck a deal with Cree for the supply of LED chips for LG’s LED-backlit LCD panels.
Now, according to the article, LG Display has several other options for LED chip suppliers, including the in-house LED manufacturing company LG Innotek.
CRS Electronics closes $5.1 million equity financing
LED lighting manufacturer CRS Electronics Inc. (TSX Venture: LED) has closed its previously-announced private-placement equity financing to raise over $5.1 million. The company issued 9,379,156 units at an offering price of $0.55 per unit for gross proceeds of $5,158,535. Net proceeds will be used to fund the purchase of new production equipment, infrastructure costs, increased staffing, marketing and media expenses, and for general corporate and working capital purposes.