Powerchip said, the new joint venture will process in 0.15, 0.11 micron and 90 nanometer technology, for logic ICs foundry business, product line cover LCD driver chips, CIS image sensor chips.

Powerchip noted, China will be the world's largest semiconductor market for the strong market demand for semiconductors. Though Powerchip has been approved to setup fab in mainland China, but held off the project for the bad financial condition of company, until now.

Hefei is a manufacturing center of BOE, a majoy Chinese panel makers, has already setup 6-generation and 8.5-generation panel fabs, and recently announced to invest in the world's most advanced 10.5-generation fab in Hefei. Hefei has became a LCD panel components industrial clustering, require large ICs foundry productivity. Powerchip’s JV in Hefei will enable the company to seek local LCD driver IC orders.