TSMC mulls LED buy outs prior to solar foray

HSINCHU: In a bid to strengthen its efforts aimed at foraying into the solar and LED markets, Hsinchu-based semicon major Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) is lining up the take over of Philips Lumiled Lighting Co., a supplier of LEDs.

The target company is the largest high-power LED (lighting emitting diode) maker in the world.

The Taiwan Headlines newspaper has said that the company has initiated parleys with Philips Lumiled Lighting Company. Though TSMC has not yet confirmed the move, it is being rumoured that the talks had been on and off for the past three years, but both sides could not decide on a deal. The reason said to be delaying the acquisition is the price quoted.

However, if the latest signals are to be believed, a take over is likely to be realized soon, because Philips Lumiled's largest shareholder Philips plans to dispose of the unprofitable company. It may be recalled that Philips Lumiled Lighting Co had been impacted much by the recession.

Market analysts believe that the acquisition might happen soon owing to the fact that all the current conditions hint at a deal. Further, Philips has built close ties with TSMC by holding a majority of stakes in the latter in the past. The acquisition is expected to be mutually beneficial to the both sides.

Meanwhile, another report said that TSMC is also mulling a plan to acquire Toyoda Gosei for its LED patents. The two take over moves may be seen as part of TSMC’s proposed big time entry into the solar sector . The company is believed to have approved the appropriation of $50 million for investment in solar energy-related areas.