Epistar Reportedly to Acquire TSMC SSL

Epistar Corp., the world's top LED chipmaker by production capacity, reported will wholly acquire TSMC Solid State Lighting Ltd. (TSMC SSL), founded by silicon foundry giant Taiwan Semiconductor Manufacturing Co. (TSMC), in an all-paper deal.

Both companies have declined to confirm the reports.

Informed sources pointed out that once the deal is realized, Epistar will become one of the few LED companies in which both TSMC and United Microelectronics Corp. (UMC), TSMC's nearest rival in the silicon foundry industry, hold stakes.

UMC now holds a 1.41% stake in Epistar resulting from Epistar's acquisition of UMC's Hilink Technology Corp. and South Epitaxy Corp. in 2006.

TSMC SSL would reportedly survive the acquisition and be headed by Formosa Epitaxy Inc. (FOREPI) Chairman J.Y. Fan. Epistar also acquired Huga Optotech Inc. and FOREPI through stock swaps.

Industry executives pointed out that the acquisition would make LED a symbolic investment on TSMC's renewable energy investment list.

TSMC SSL was founded in 2011 as part of TSMC's plan to generate profit outside the increasingly crowded silicon foundry industry.

(KL)