Powerchip signed an investment agreement with Construction Investment Holding co. owned by Hefei City government to establish Hefei Jinghe integrated circuit company (abbr. Jinghe) to set up a 12-inch Fab, whose total investment reaches RMB$13.53 billion (NT$67.65 billion) and the monthly production capacity will reach 40,000 chips.

Powerchip’s Hefei 12-inch Fab focuses on LCD driver IC orders at preliminary stage, having 90 nm facility. Hefei province is the main manufacture location for BOE, a Chinese LCD panel maker, that could make it easier for Powerchip to acquire LCD driver IC orders.

Frank Huang, founder and CEO of Powerchip, said that “Made in China” policy for semiconductor is implementing in China, implying that at least more than 50% of semiconductors should be manufactured in China to have a sales permission in China. Therefore, rather than competition, cooperation strategy is the motivation for Powerchip’s movement this time.

(Yiting Wang)