China Star intends to purchase 119 million countries outside the star semiconductor chip chip business

September 24th, China Star optoelectronics announced that it intends to own funds 119 million yuan acquisition of subsidiary Foshan state star Semiconductor Technology Co., ltd..

China Star Electric started in the packaging, the main product of the National Star semiconductor epitaxial chip packaging upstream products. With this investment, the country aims to enhance the power of the star upstream epitaxial chip link strength, open up the whole industry chain LED.

It is worth noting that the country star semiconductor operating conditions over the past few years with the loss of majority, and this acquisition, the seller will nationstar semiconductor equity discount sale, therefore, the country star semiconductor acquisition could further enhance the profitability of nationstar, remains to be seen.

State star photoelectric overweight chip business

Prior to the completion of the acquisition, the state star holding 71.67% stake in the National Star semiconductor, the formation of the National Star semiconductor absolute holding. After the completion of the acquisition, China Star semiconductor will become a wholly owned subsidiary of China Star optoelectronics.

State star semiconductor products for the main chip, ranking the upper reaches of the LED industry chain, the middle reaches of the product is the packaging business.

China Star power is started in the packaging, is one of the leading enterprises in the field of packaging. Fortune Securities in a research report pointed out that, in the field of nationstar packaging market after the MLS and Xiamen XinDa.

Not only that, in 2016 the National Star optoelectronics has two times the production of small spacing LED package. Fortune Securities Research Report, according to the current capacity conversion, its small spacing LED packaging market share of more than 20%.

At the same time, in 2016, including a number of listed companies, including LED, including the rise of product prices, which is also seen as a signal to pick up the industry.

Nationstar in the acquisition of nationstar semiconductor, perhaps in Strike while the iron is hot. In the announcement, the country star power with this investment, the company hopes to further optimize the management and control of the country star semiconductor, and enhance the upstream epitaxial chip link strength, upgrade in the upstream of the LED market competitiveness and business profitability, so as to enhance the overall strength of the company.

However, due to the relationship between government subsidies, the domestic LED industry production capacity has been surplus, this phenomenon is particularly serious in the upstream chip industry. "Pick up on the game chip business is very difficult," said Guo Xiu, Secretary General of Guangdong Lighting Appliance Association, said in an interview with reporters, "LED industry warmer, more will be reflected in the middle reaches of the industry or downstream. "

Subsidiaries in the first half loss

It is worth noting that the other shareholders of the National Star semiconductor, are sold at a discount of the shares held by the state star semiconductor.

China Star semiconductor was founded in 2011, by the National Star optoelectronics joint venture in Guangzhou good faith Venture Capital Co., Ltd., GF Cci Capital Ltd and natural Deng Jinming three parties jointly set up investment. Business information, four companies were completed in February 2011 to pay the capital contribution of 430 million yuan, respectively, $100 million, 60 million yuan and RMB yuan. China Star optoelectronics on the formation of the National Star semiconductor absolute holdings, and in the end of 2015 to increase the capital of $60 million.

After 5 years of operation, the state of the star to the acquisition of the country's top star semiconductor stake in the above three companies, the hands of the hands of the hands of the three companies to invest in the price of the sale of the price of 30 percent off.

Behind the sale of discount, is the past 5 years, the state of the star semiconductor rather dismal business situation, almost no profit for shareholders. Daily economic news reporter combed the National Star photoelectric annual report found that the National Star semiconductor 2011 to 2015 net profit of 1 million 131 thousand and 500 yuan, -876.75 million, -3791.73 million, -3705.33 million and $3 million 184 thousand and 800.

Chips from construction to production and profitability, generally takes 3 years, Guo Xiu said in an interview with reporters.

Therefore, the country star semiconductor 2015 earnings may give investors hope. But in the first half of 2016, the National Star semiconductor profitability and turn down, a loss of 2 million 299 thousand and 100 yuan.

Guo Xiu pointed out that the current industry MOCVD equipment is less than 20 of the chip companies due to the lack of scale effect, basically a loss. The face of continued losses situation, many enterprises or investors have to arm to survive, shutting down the production line or sale.

The acquisition of the acquisition of the national star can further enhance the profitability of the National Star optoelectronics, remains to be seen.

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