Powerchip and the Hefei government have jointly invested in Hefei Construction Investment and Holding Co., Ltd. and last week held a groundbreaking ceremony to launch the construction of a new factory with an expected monthly production capacity of 40,000 12-inch chips. This is the second Taiwanese company to officially jointly invest in a 12-inch chip factory with Mainland China.

In addition, Powerchip subsidiary Max Electronics Corp., which is 100% owned by Powerchip, currently has an 8-inch chip factory and has decided to establish offices in Shanghai and Shezhen.

Like Powerchip, Max Electronics primarily manufactures LCD Drivers, Power ICs, and CMOS Image Sensors; however, it mainly provides services for small and medium-sized enterprises.

Powerchip pointed out that demand in the semiconductor market in Mainland China is extremely strong, and it is the world’s largest semiconductor market.

(TR/Phil Sweeney)