Nichia and Citizen Electronics Strengthen White LED Business Cooperation

Global Holdingsâ€™ LED led factory, Citizen Holdings (hereinafter referred to as Citizen HD), announced that its LED business subsidiary, Citizen Electronics, will establish a capital/business partnership with Japanese LED manufacturer Nichia Chemical Industry (hereinafter referred to as Nichia). In order to strengthen the cooperation between the two sides of the white LED business.

In the capital cooperation section, Nichia will fully subscribe for new shares issued by Citizen Electronics on April 2, 2012. The new shares will be issued at 2 billion yen, accounting for 5% of Citizen Electronicsâ€™ overall shareholding.

In addition, in the business cooperation segment, Citizen Electronics and Nichia will jointly develop LED package/component products that meet market demand, and will jointly construct new manufacturing technologies; secondly, both parties will reduce costs by jointly purchasing materials; Nichia will expand its OEM orders for Citizen Electronics to release white LEDs.

It is understood that Citizen Electronics signed a manufacturing patent licensing contract with Nichia in 2002 to help OEM production of white LEDs in Japan. Citizen HD had capital partnerships and mutual holdings with Japan in 2007, with Citizen HD holding a 3.7% stake in Nichia and Nichia holding a 2.9% stake in Citizen HD.

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