Fund's deal brightens LED sector prospects

The Chinese LED lighting industry, which has long fretted over a lack of patents, may have reached a turning point.

LED (light-emitting diode) lamps have a life span and electrical efficiency that is several times greater than incandescent lamps, and significantly greater than most fluorescent lamps.

Chinese investment fund GO Scale Capital said on Wednesday that it will acquire an 80.1 percent interest in Lumileds, a major LED components and automotive lighting business unit of Dutch technology giant Royal Philips. Philips will retain the remaining 19.9 percent interest.