Taiwan’s Ennostar Inc. disposed of NT$450 million ($13.7 million) worth of shares in troubled Micro LED manufacturer PlayNitride between March and August, marking a strategic withdrawal from the struggling next-generation display technology.
The LED chip giant cited resource reallocation and financial restructuring as reasons for reducing its stake in PlayNitride, according to Monday’s regulatory filing. Ennostar’s subsidiary Epistar retains 9.13 million PlayNitride shares, representing a 7.76% holding in the loss-making company.
The disposal comes as PlayNitride reported deteriorating finances, with second-quarter losses surging over 1,100% to NT$370 million ($11.3 million) while revenues declined 37% year-over-year. Despite securing NT$800 million ($24.4 million) in convertible bonds this year, the Micro LED pioneer continues burning cash as commercial adoption lags projections.
Ennostar Chairman Peng Shuanglang acknowledged market commercialization challenges while maintaining long-term confidence in Micro LED prospects. The company suffered expanding losses in the first half due to weak consumer demand and inventory adjustments.
Rather than doubling down on display technology, Ennostar is pivoting toward optical communications and industrial sensing applications. The firm recently joined a silicon photonics alliance led by Taiwan Semiconductor Manufacturing Co. and Advanced Semiconductor Engineering, targeting lucrative AI server markets.
With NT$15 billion ($458 million) in cash reserves and zero debt, Ennostar appears positioned to weather the transition from its traditional LED roots.
