Mar. 25, 2008 – Intel’s decision to locate a 300mm fab in Dalian, China, has spurred interest in the area for other industries, including LED makers from Taiwan, with Epistar and Everlight Electronics considering building a joint facility there, according to the Taiwan Economic News.

If it happens, the combination would form “a relatively dominant conglomerate” with Hon Hai Precision Industry, which already makes LEDs in China, and could “trigger a shakeup in local LED makers’ share of China’s domestic market” for end applications in autos and streetlights, the publication reports.

Growth of an automotive sector in northeastern China has spurred big demand for LED auto lamps and LED lights here. In concert with national policies to sponsor high-tech industry development, the local Dalian government has approved a 15% income tax rate and 5%-17% tax return rate for companies in the Jinzhou IT Park, about 30 miles from Dalian’s economic zone.