9 August 2010


SemiLEDs files for $172.5m IPO

High-brightness LED chip maker SemiLEDs Corp of Boise, ID, USA (which has chip fabrication facilities in Hsinchu Science Park, Taiwan) has filed plans with the US Securities and Exchange Commission (SEC) to raise up to $172.5m in an initial public offering (IPO) of stock on NASDAQ under the symbol ‘LEDS’. Bank of America, Merrill Lynch, Barclays Capital, and Jefferies & Co are the lead underwriters of the offering.

Founded in 2005, SemiLEDs’ proprietary blue (white), green and UV ‘ metal vertical photon’ (Mvp) LED chip design features a vertical LED structure on a patented copper alloy base (after removal of the sapphire substrate) that provides what is claimed to be the best thermal resistance on the market (0.4°C/W) — allowing better heat removal than for LEDs that retain the sapphire substrate — as well as electrical and optical advantages such as greater luminous efficacy (more than 120lm/W) and longer lumen maintenance. Reclamation of the sapphire substrate also allow reductions in both the manufacturing cost and the dependence on sapphire (for which the current short supply is increasing cost). The firm also believes that its technology will aid its migration to larger (6-inch) wafer sizes.

SemiLEDs fabricates LED chips for sale (mainly to chip-packaging customers in China, Taiwan and other parts of Asia, or to distributors who sell to packagers). It also packages some of its chips into LED components for sale to distributors and end-customers in selected markets (mainly for general lighting applications, including street lights and commercial, industrial and residential lighting). The firm’s revenue was $29m for the 12 months to end-May 2010.

To meet demand for its LED products, SemiLEDs intends to use net proceeds to expand its production capacity in Taiwan, build a test line for R&D related to LED chip production based on 6-inch wafers, and for general corporate purposes (including working capital and capital expenditure).

SemiLEDs may also use some of the proceeds to acquire or invest in complementary technologies, solutions or businesses or to obtain rights to such complementary technologies, solutions or businesses.

Search: SemiLEDs