Epistar will invest in and partner with Huga Optotech close July 19. It will become Huga's largest shareholder and in related news gallium arsenide (GaAs) foundry specialist Win Semiconductor will also invest in Huga. At that time Epistar will hold a 47.88% stake in Huga worth NT $8.6 billion (USD $268 million).

Epistar's board of directors has approved a plan to issue 78 million new shares that it will exchange for 184.08 million Huga shares. Huga is also issuing 100 million new shares at NT $30 (USD $0.94) to raise additional capital. Epistar will subscribe to 44.79 million of the new shares with a NT $1.5 billion (USD $50 million) cash investment.

Win Semiconductor, meanwhile, is expected to buy the remaining new shares issued by Huga. Win Semiconductor Chairman Dennis Chen is also the current Chairman of Huga.