IFC Leads $55 Million in New Investment to LatticePower
Beijing, China – December 8th, 2010 – Lattice Power Corporation announced $55.5 million in new financing, led by IFC, a member of the World Bank Group. The signing ceremony was held at China World Hotel in Beijing on December 8th, 2010. Mr. Junqing Chen, Acting Mayor of Nanchang, Mr. Xiantang Meng, National Development and Reform Commission deputy director of high-tech industry, Mr. Hyun-Chan Cho, Country Manager of China & Mongolia of IFC, Mr. Alex Pan, Managing Director of GSR Ventures, and Mr. Sonny Wu, Chairman and CEO of Lattice Power attended the ceremony.
Lattice Power has developed a breakthrough silicon based GaN LED technology, and owns over 150 patents in China and around the world. When compared to the two current dominant LED technologies, silicon-based LED technology has the advantages of low material cost, good thermal dissipation, and simple structure. The technology enables low-cost and large-scale manufacturing, enabling LED light bulbs to be used in millions of households, and will change how people use general lighting in their daily lives.
Since 2009, worldwide coverage of an evolving low-carbon economy has been driving vigorous development of the LED industry. Recognizing huge market potential, Lattice Power implemented a production capacity expansion plan quickly and took the lead by signing a MOCVD purchase contract with one of two major global suppliers – Aixtron. At the time it was Aixtron’s largest single order from Mainland China. By the end of 2010, the production capacity of Lattice Power had reached 14 billion chips.
In 2011, with the addition of new MOCVD installations, the production capacity of the company will reach 24 billion chips, and the company will become one of largest epitaxial material and chip manufacturers in China. “LatticePower’s revolutionary Silicon-based GaN LED technology combined with world class technologists and management team will enable the lowest-cost and the best performing solid state light bulbs. LatticePower is committed to build a world-class technology company in China,” says LatticePower Chairman Sonny Wu. Lattice Power Director and Executive Vice President Min Wang comments, “We are lucky that we took advantage of the fast growing LED market opportunity. By securing the key equipment and capital investments, LatticePower is well positioned to lead in solid state lighting development and realization”.
“This round of new financing for Lattice Power’s production capacity expansion led by the world-class investment institutions demonstrated the commitment of the investment community to the emerging green technology and energy-saving industry, and the recognition of domestic and foreign investment institutions on the accomplishment achieved by Lattice Power,” said Managing Director of GSR Ventures Alex Pan. Since 2006, GSR Ventures has been the leading investor for Lattice Power, joined by Mayfield Fund, AsiaVest Partners, Keytone Ventures, and Temasek Holdings, with a total of over $70 million U.S. dollars in investment capital, and devoted to the industrialization of original Chinese technology. The company has already successfully launched a variety of LED products for the fast-growing LED display, LED backlighting and solid state lighting application fields.
This new round of investment not only provides sufficient capital to support Lattice Power’s production capacity expansion, but also enhances Lattice Power’s worldwide presence. The combination of the capital and technology will drive development of this green industry to a new level, contribute to the development of energy saving and emission reduction initiatives around the world, and help to re-build a harmonious relationship between human beings and the environment.
About IFC (text from the IFC website)
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information visit www.ifc.org.