Vertical Divider
Chinese Government Delays Epistar and Lextar Merger
Epistar and Lextar Electronics are rescheduling their stock swap deal from October 20, 2020 to January 6, 2021, awaiting China's antitrust clearance. Instead, Epistar and Lextar will establish EnnoStar, a holding company to wholly own both entities, via the stock swap, which has already been approved by Taiwan's Fair Trade Commission. As they have subsidiaries in China, the deal also needs Chinese approval. China's antitrust review could take six months to one year, and therefore Epistar and Lextar have deferred the deal.
Epistar said it will begin production of mini LED chips in October 2020 as scheduled, and aims at an initial yield rate of 85% in Q420 and over 90% in the second or third quarter of 2021. China’s San'an Optoelectronics will compete with Epistar for mini LED backlighting applications used in Apple's iPad and MacBook in 2021, according to analyst Kuo Ming-chi at China-based TF International Securities. Apple will adopt mini LED backlighting for iPad Pro initially with Epistar to be the sole supplier, according to industry sources. San’an in early 2020 reportedly estimated that it lagged one year behind Epistar in mini LED development, expecting to begin trial production of mini LEDs at the end of 2020, with certification in second-half 2021, and will likely obtain orders from Apple in 2022. Typically, Apple uses two or to reduce supply risks and to keep costs down and , San’an is a likely choice in 2021, Kuo noted.
Epistar and Lextar Electronics are rescheduling their stock swap deal from October 20, 2020 to January 6, 2021, awaiting China's antitrust clearance. Instead, Epistar and Lextar will establish EnnoStar, a holding company to wholly own both entities, via the stock swap, which has already been approved by Taiwan's Fair Trade Commission. As they have subsidiaries in China, the deal also needs Chinese approval. China's antitrust review could take six months to one year, and therefore Epistar and Lextar have deferred the deal.
Epistar said it will begin production of mini LED chips in October 2020 as scheduled, and aims at an initial yield rate of 85% in Q420 and over 90% in the second or third quarter of 2021. China’s San'an Optoelectronics will compete with Epistar for mini LED backlighting applications used in Apple's iPad and MacBook in 2021, according to analyst Kuo Ming-chi at China-based TF International Securities. Apple will adopt mini LED backlighting for iPad Pro initially with Epistar to be the sole supplier, according to industry sources. San’an in early 2020 reportedly estimated that it lagged one year behind Epistar in mini LED development, expecting to begin trial production of mini LEDs at the end of 2020, with certification in second-half 2021, and will likely obtain orders from Apple in 2022. Typically, Apple uses two or to reduce supply risks and to keep costs down and , San’an is a likely choice in 2021, Kuo noted.
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