This will be quite technical. The report states that "the Drive IC is the most expensive component of the liquid crystal module." By that I assume they are not including the backlight that's a part of the LCD module. Because if they did include the backlight, it would be the most expensive portion of the module. Some morsels:
-High-pressure techniques are required for small-medium sized TFT LCD driver ICs. Source drive and gate drive needs 6V and 20V-40V. While large-area TFT LCD driver ICs require 0.35 micron, small-medium driver ICs need to be concentrated as possible. High-pressure technique of 0.18 – 0.25 micron with a 40V power consumption is now undergoing testing. TSMC seems to be the leader.
-Various segments require difficult voltages and therefore technical requirements.
-Driver IC manufacturers must have capacities for analog circuits, power management, MCU, digital clock circuit, image processing and color management.
-Mobile phone TFT LCD driver ICs have the highest technical requirements because of tight integration of the driver IC, gate driver IC, clock control, power supply, cache memory into a single chip. NEC, TOMATO and LEADIS are three of the few suppliers are able to integrate these functions into a single chip.
There's more, and you can find it here.