China is looking to build a homegrown panel-use driver IC industry in Hefei, China, which will likely threaten Taiwan's IC driver IC sector, according to industry sources.
The China government's push to establish the local display driver IC manufacturing supply chain will be led by TFT-LCD panel vendor BOE Technology, said the sources.
BOE recently announced plans to set up an IC industry fund worth about CNY4 billion (US$626 million) with a number of government-backed investors such as the National IC Industry Investment Fund and E-town capital. BOE added its investment in the fund will be CNY1.5 billion.
In addition, Taiwan's IC foundry Powerchip Technology and LCD driver IC firm ILI Technology (Ilitek) will both play a part in China's homegrown display driver IC sector, the sources indicated.
Earlier in 2015, Powerchip disclosed the company had inked an agreement with Hefei Construction Investment and Holding to set up a 12-inch joint venture fab in Hefei. The fab will have an installed capacity of 40,000 12-inch wafers a month, focusing initially on the manufacture of LCD driver ICs using 0.15- and 0.11-micron and 90nm process technologies.
