With Lumileds, a Chinese chip giant enhances vertical control and global influence

In a move that reshapes the global LED components landscape, China’s largest LED chipmaker, San’an Optoelectronics, and Malaysian company Inari Amertron Berhad announced that they will jointly acquire 100% equity interest in Lumileds Holding B.V. and its European and Asian subsidiaries. The $239 million joint deal brings together industry muscle from China and Southeast Asia to take the reins of a storied, but recently restructured, player in global lighting.

The definitive agreement transfers full ownership of Lumileds International from its current group of investors to the San’an-Inari duo. San’an, a Shanghai-listed company with $2.2 billion in annual revenue, will likely bring significant manufacturing scale, while Inari, a leader in semiconductor assembly and test services, adds backend precision. 

The Players: Scale, Chips, and a Checkered History

San’an Optoelectronics is no stranger to dominance. Controlling nearly 30% of the Chinese LED chip market and producing over 300 billion LED chips annually (according to MicroLED-Info,) the company’s manufacturing sprawl includes facilities across Xiamen, Tianjin, Wuhu, and Quanzhou. With recent expansion into silicon carbide and power devices through a $3.2 billion joint venture with STMicroelectronics, San’an isn’t just a chipmaker — it’s a critical player in the future of compound semiconductors.

Inari, meanwhile, may be lesser known globally but is a staple in Malaysia’s semiconductor landscape. With RM1.5 billion ($350 million) in annual revenue and a customer concentration risk that’s drawn investor scrutiny, the Lumileds deal could be a diversification play. Inari’s 5,500 employees span 11 facilities across Asia, producing over 5 billion chips a year.

The two companies will split control of Lumileds International, governed by a Shareholders’ Agreement and Collaboration Agreement signed alongside the deal. While financial details beyond the $239 million purchase price haven’t been disclosed, the acquisition comes amid intensifying scrutiny of Chinese investment in tech sectors tied to national security — especially in the U.S.