Taiwanese LED manufacturer Genesis Photonics Inc. (GPI) announced Tuesday that it will file for bankruptcy with the Tainan District Court and shutter the company Wednesday due to operating difficulties and poor financial conditions.
As part of the full-scale shutdown, the company’s roughly 260 employees and managers will be dismissed, according to an announcement on the website of the Taiwan Stock Exchange Corp.
GPI shares were delisted Sept. 26 after the company posted a negative net asset value per share, meaning liabilities exceeded assets.
The company has sustained operating losses over the past 10 years due to a price war with competitors in the Chinese LED sector, GPI said in a statement.
In the first half of this year, COVID-19 restrictions in China forced many factories to suspend operations, which strained global supply chains. In addition, global inflation and the slowdown in end market demand also greatly impacted the company.
In such a precarious business environment, GPI’s board of directors decided to end operations, according to the company.

Source: Focus Taiwan News Channel