Taiwan's Fair Trade Commission (FTC) has approved plans for Epistar to acquire a 47.9% stake in Huga Optotech via a stock swap and participation in a private fund raiser.

The FTC pointed out that both Epistar and Huga are focused on the production of LED epitaxy wafers and LED chips. There are numerous competitors in both domestic and overseas markets and more players are entering the sector. Hence, the alliance of the two companies will not create an unfair advantage in price and profits, the FTC said.