Saturday, November 14, NATIONSTAR (002449.SZ) announced to replenish its two subsidiaries, increasing capital of 17.25 million RMB to INVENLUX, 60 million RMB to NATIONSTAR semiconductor co.,ltd. Therefore NATIONSTAR holds 67.21% shares of INVENLUX and 74.27% of NATIOSNTAR semiconductor co.,ltd after this replenishment, which bespeaks the next step of NATIOSNTAR on chip production expansion, following the LED component expansion in October.
It is known NATIONSTAR is mainly focused on the low-power chip used in lighting, display, backlight white LED and blue&green LED, while INVENLUX is on high-power blue&green and UV chip. The former is mainly used in special lighting, lighting projects, the latter used in air purification, food preservation, plant growth, industrial light-curing, medical beauty and health care.
In fact, with a more universal application in general lighting, it is believed the industry of LED chip will show a booming and flourishing image in development over the next 3 years. As a result, the competition, merger, reorganization will be undoubtedly intensified. In this circumstance, market-centralization on a rising scale seems inevitable when too many small chip companies have to struggle for ever-dwindling shares of living space.
On the other hand, it seems there is a huge potential blue-ocean market for UV and DUV chip. It is widely reported recently YUANRONG purchased Qingdao photoelectric just for its core technology on UV chip. Similarly INVENLUX could provide technical support to its parent firm, NATIONSTAR, in the same way.