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Renesas, Sharp, Powerchip enter LCD driver JV

Posted: 15 Feb 2008 ?? ?Print Version ?Bookmark and Share

Keywords:LCD driver? controller? joint venture?

Renesas Technology Corp., Sharp Corp., and Powerchip Semiconductor Corp. have agreed to establish a joint venture on Apr. 1, specializing in drivers and controllers for small- and mid-size LCDs.

In recent years, the market for LCD panels has grown exponentially, due to the growing popularity of LCD TVs, cellphones with higher quality displays, and the use of LCDs in products such as car navigation systems and game consoles. The market growth for small- and mid-size LCDs is expected to be especially strong because of the emergence of mobile phones. More mobile phones are required to support sophisticated multimedia capabilities such as built-in digital cameras and reception of TV programs to enable handsets' advanced functionality and higher picture quality standard. As these conditions generate heavy demand for integration of driver and controller functions for small- and mid-size LCDs, market competition is expected to become increasingly fierce due to intensifying price competition and the emergence of fabless manufacturers overseas.

To respond to such growing competition, the three companies have agreed to establish a joint venture in order to realize improved cost competitiveness, increased design capabilities, more attractive products, and expanded sales.

Consolidating the business operations of Renesas and Sharp in this field, the new company will engage in the design, development, sales, and marketing of LCD drivers and controllers. Business operations related to these products will be transferred to the new company starting April for Renesas, and by the end of fiscal 2008 for Sharp.

The new company is a fabless semiconductor manufacturer focusing on design, development, sales, and marketing. Powerchip will handle most of the actual production, using its ultrafine process technology and production cost competitiveness.

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