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Local LED firm to set up US$200 million joint venture in China

Local LED firm to set up US$200 million joint venture in China

Taipei, May 27 (CNA) Light emitting diode (LED) maker Genesis Photonics Inc. said Thursday that it will set up a US$200 million (NT$64.6 billion) plant in the city of Kunshan, in China's Jiansu Province, working in conjunction with the Kunshan city government.
A spokesman for Genesis said a board meeting has approved the joint venture proposal in which the company will hold a 49 percent stake, while the Kunshan city government will take the remaining 51 percent.
The new plant is scheduled to break ground in the second half of this year and is expected to begin operations on a trial basis in the first quarter of next year, manufacturing LED chips and LED lighting systems, the spokesman said.
"Kunshan has become a favorite location for Taiwanese investors.
We want to take advantage of the cluster of upstream and downstream Taiwanese investments," the spokesman told CNA.
"In Kunshan, Genesis is expected to get closer to our customers, in particular in notebook computer and flat panel TV production, " he said.
So far, more than 3,600 Taiwanese investors have established a presence in Kunshan, accounting for about 70 percent of the city's total production value, according to Genesis.
Under the joint venture proposal, the Kunshan city government will help with the marketing of the joint venture's products in China.
The spokesman said that as the Kunshan city government will hold a majority stake in the joint venture, the new company will be categorized as a Chinese state-run enterprise.
"China has great potential for growth in LED lighting and flat panel TVs with LED backlights.... We hope the status of the new company will make it easier to strike deals in China, " he said.
(By Han Ting-ting and Frances Huang)




Updated : 2021-05-09 07:48 GMT+08:00