UK LED specialists Selectronic and Chinese partners Hongli Zhuihui have agreed a US$75m collaboration in the automotive LED sector to strengthen their market position.
They have teamed up with Taiwanese company Epistar in a major alliance to boost product development.
Selectronic are partners and European distributors of LEDs for Hongli Zhihui based in China and MD Kevin Dry welcomed the collaboration.
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Dry said: "Partnering with the Taiwanese company Epistar forms a strategic alliance aimed at harnessing resources from both sides to develop automotive lighting products.
Hongli's automotive interior and exterior LED lighting is used for headlamps, daytime running lights, fog lamps, turn signals, brake lamps, work lamps, dashboard backlights and reading lamps.
The tie-up with Epistar was sealed with a strategic collaboration agreement which runs to October 2021. During that time Hongli will buy Epistar's patented automotive LED chips worth 500million RMB – $75.37m – to produce packages exclusive to automotive lighting. As well as developing automotive lighting products, the coalition also aims to cut verification time.
"This coalition will also protect Hongli products from potential patent infringements and provides Epistar chips of substantial quality, enabling us to bring down prices and speed up expansion of the two companies into this sector," said Dry.
