BOE Sells Beijing Fangyi Integrated Circuit Design Company

Pacific Epoch: BOE sold its subsidiary to Teralane Semiconductor, a Chinese company on June 5 for US$3 million in cash and US$3 million in shares. BOE now holds a 16.4% stake in Teralane. Teralane is planning to set up a Taiwan-branch in the near future.

I am not sure if the Beijing Fangyi IC Design Company was able to mass produce cost-effective driver ICs for integration into LCDs that BOE was manufacturing. Otherwise, it would be most beneficial to be vertically integrated similar to how Samsung is with its semiconductor group supplying driver ICs and its LCD group supplying LCDs for cost-effective Samsung-branded monitors, notebooks and TVs. Most likely, Teralane is (more) capable of producing driver ICs for LCDs and at cheaper prices.

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