Lumileds’ Acquisition Impactson the China LED Industry

2015/04/27

It is said two important points of the impact that the Lumileds’ acquisition by GO Scale Capital has on the LED industry:

1. Chinese LED manufacturers have a chance to resolve patent issues Just like our OKT LIGHTING have get nearly 20 patents in China, including led commercial downlight, led residential downlight and led emergency backup and enter overseas markets.

Lumileds is one of the five major IP holders in the LED industry. The acquisition also provides the company an additional 600 patents from Royal Philips. In the future, Lumileds will be able to license its vast patent holding in order to boost its operating results. Chinese LED manufacturers will also be able to break through the patent barriers surrounding the foreign markets. With Chinese investors having the controlling stake in Lumileds, China-based companies will have a greater voice when it comes to resolving patent issues and establishing their presence in the global LED market.

2. GO Scale Capital consolidates its resources and provides Lumileds more strategic partners

GO Scale Capital has made a series of investments in companies positioned on the LED supply chain: Lattice Power (epi wafer), TimesLED (epi wafer), ShineOn (package), SunSun Lighting (LED luminaries, like led downlight), and Alighting (LED luminaires and heat dissipation). Once Go Scale Capital has the controlling stake in Lumileds, it may consolidate all its industry-related interests, inserting its new acquisition into the supply chain.

We expects Lumileds manufacturing outsourcing to other LED makers to continue as Lumileds gains strategic partners in China after the takeover.

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