Ennostar Announces Sale of Zhunan MicroLED Plant for $21M

Taiwan’s Ennostar is selling its Zhunan plant for NT$670 million ($21 million) with a small profit from the sale as part of its strategic sale of some assets to facilitate a reorganization of its finance.

The company has low utilization rates at its existing blue LED at Jingdian and has been actively reorganizing resources in Taiwan to optimize the use of plant space. Ennostar initially planned to build a new MicroLED production facility in Zhunan and had pursued a capital raise in 2022 but now intends to use the space freed up by the optimization of existing resources at its subsidiary Epistar1.

Epistar’s blue LED epitaxial wafer business has been affected by the global economic downturn and weak consumer demand, resulting in low capacity utilization rates. This has led to write-downs of assets and a seemingly negative value for the company’s capitalization to its assets. The total impact on Ennostar Holdings’ consolidated net loss for the period is going to be NT$3.45 billion ($108 million).