San’an Optoelectronics Co. Ltd, one of China’s largest LED makers, plans to invest NT$2.35 billion (approx. $80 million) in Formosa Epitaxy (Forepi), a Taiwan-based manufacturer of InGaN-based LED wafers and chips.

The deal, which is subject to regulatory and board approvals, would give San’an a 19.9% stake in Forepi.

San’an plans to acquire, via its 100-percent owned Xiamen subsidiary, up to 120 million new shares in Forepi at NT$19.6 per share, according to the Taipei Times. San’an will become Forepi’s largest institutional shareholder, ahead of Japan’s Mitsui & Co, which holds 15% of the company (see Related Stories).

If approved, the deal is set to become the biggest single investment by a Chinese firm since Taiwan relaxed rules on mainland investment in 2009, according to an AFP article.