August 1, 2025
San'an and Inari to Acquire Lumileds in $239M Deal
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. Lumileds CEO Steve Barlow, who took the helm following the company’s 63-day sprint through Chapter 11 bankruptcy restructuring in 2022, said the acquisition represents “the next step” in Lumileds’ transformation and growth.
A Name That Survived and Reshaped Itself
To many in the lighting industry, Lumileds is a legacy name, once owned by Royal Philips and known for pioneering advancements in automotive and illumination-grade LEDs. But its recent years have been anything but stable. Five years after its 2017 sale to Apollo Global Management, the company underwent a swift prepackaged bankruptcy in 2022, shedding $1.4 billion in debt and reemerging just over two months later with new ownership and a restructured board.
Now, under the prospective stewardship of San’an and Inari, Lumileds is poised for another chapter: this time shaped by scale, supply chain control and geopolitical nuance.
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.
Lumileds' Last Chinese Deal Was Blocked
The geopolitical undertone here is hard to ignore. In 2016, a Chinese bid to acquire Lumileds was blocked by the Committee on Foreign Investment in the United States (CFIUS) over national security concerns. That failed deal, involving Go Scale Capital, ultimately led to Philips selling to Apollo at a steep discount.
Today’s joint acquisition may fare better, given the deal’s joint-venture structure and its split ownership between a Chinese and a Malaysian entity. Still, the deal must clear customary regulatory approvals, and questions around CFIUS and European scrutiny remain.
If the transaction closes as expected by the first quarter of 2026, it will mark a rare instance of a major LED brand transitioning into Chinese-majority ownership via the front door. Whether that reshapes its U.S. footprint — or invites new regulatory scrutiny — remains to be seen.
What Comes Next?
For Lumileds, headquartered in Amsterdam and Eindhoven with major U.S. operations in San Jose, this deal could bring both stability and fresh pressure. San’an’s vertical integration promises deeper control over upstream materials. Inari may open new OSAT efficiencies. Together, the acquirers may be positioning Lumileds as a cost-competitive, innovation-led player in the maturing LED market.
But questions linger. Can the new owners preserve Lumileds’ innovation pedigree? Will global customers see the new ownership structure as a competitive edge — or a risk?
Lumileds’ next chapter begins with its most complex partnership yet. And like the company’s own LEDs — precise, adaptable, and prone to scrutiny — it will shine or fail under the sharp light of the global market.
