As a variety of undesirable industry phenomena like overcapacity, blind production and hostile pricing war etc. pops up in recently years, merger and acquisition is only a matter of time. 
 
ETi has made a strategic tie with NVC in the form of private placement and become NVC’s singular substantial shareholder before the market peaks, meanwhile, ETi’s professionalism in LED upstream tremendously contributes to the timely delivery of NVC’s LED lighting products. The alliance of the two parties, however, can be seen virtually as low-cost vertical integration in LED industry, some industry researchers say. 
 
Insiders indicate that NVC will achieve a breakthrough accordingly on emerging LED lighting products, which conforms to the interests of shareholders like SAIF Asia and Schneider Electric etc. Yet taking a stake in NVC is a must for ETi, for the sake of complementary advantages in LED industry and layout of channels.