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Optimistic about LED lighting market, Lextar buys AUO factory for NT$1.1 billion to expand production

In response to the booming demand in the LED lighting market, Lextar announced on Wednesday (13th), through a resolution of the board of directors, that it would purchase the Zhunan factory leased from parent company AUO for 1.1 billion yuan (approximately 224 million yuan) for future production capacity expansion. This amount will be gradually included in AUO's accounts starting from the third quarter and will contribute to AUO's non-profit revenue.
Longda said that demand for backlights and lighting continued to be strong in the third quarter, including direct and wide color gamut TVs, mobile phones, lamps and flat panel lights. The newly developed flip-chip package will also be mass-produced for lighting in the third quarter. Lextar also announced on Wednesday the new general manager candidate Lin Mengyi. The former general manager Huang Denghui served as the chairman of Lextar's Suzhou Daliang Electronics full-time.
Lextar Electronics stated that the leased area of ​​the Guangyuan Science and Technology Park factory in Zhunan Town, which was originally leased from AU Optronics, has exceeded half. The current main production projects include LED chips, packaging and the assembly of some lighting products. Because it is optimistic about the future growth demand of the LED lighting market, it will purchase the factory for future expansion of production capacity and save related rental costs. The total land area is 26,100 square meters, the total factory area is 51,100 square meters, and the total transaction amount is NT$1.104 billion (approximately RMB 230 million). The transaction amount refers to the appraisal report of relevant external experts and is handled in accordance with relevant regulations.
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