Beijing, China, December 9, 2010—IFC,
a member of the World Bank Group, is making a $12.5 million equity investment
in Lattice Power Corporation, a light-emitting diode (LED) chip manufacturer,
to support energy efficiency technologies through faster adoption of quality
LEDs in China.
Proceeds from IFC’s investment will
be used to expand Lattice’s LED chip-manufacturing capacity in Jiangxi
Province, one of China’s poorer regions. IFC’s financing will also
provide funding for capital expenditures to help Lattice achieve national
presence in China.
“IFC’s investment is instrumental
to help Lattice adopt the highest environmental, social, and corporate
governance business standards,” said Sonny Wu, Lattice Power Chairman
and CEO. “We are committed to international best practices and would
like to be the model of sustainable development for other LED companies
While China has a growing LED packaging
and application industry, the production of high-quality LED chips is still
in its early stages. Lattice produces chips using an innovative gallium
nitrite-on-silicon process that results in less expensive LEDs and supports
wider adoption of this energy-efficient technology.
One of IFC’s strategic priorities in
China is to address the climate-change challenge through renewable-energy
development, cleantech investments, and innovative energy-efficiency financing.
Lattice Power's LED technology offers higher efficiency, less pollution
and more durability than conventional lighting.” said Hyun-Chan Cho, IFC's
Country Manager for China and Mongolia. "Our partnership with
Lattice will help to promote the local economy in Jiangxi Province, one
of China's poorest regions, by supporting a leading private enterprise."
LED light can provide the same level
of brightness as a traditional incandescent light source using just one
tenth of the electricity. It also does not use mercury, which is present
in energy-saving compact fluorescent lighting technology.
The partnership with IFC will help Lattice
create more than 500 jobs in one of China’s frontier regions in the next
three years, and IFC expects to be a long-term investor in China’s private
LED industry. The growth of the LED industry will enable the adoption
of an energy-efficient technology in a wide range of applications, including
laptops, television sets, monitors, displays, and general lighting.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit