Himax Technologies, a Taiwan-based manufacturer of semiconductor components for LCDs, announced February 1 the board of directors approval of its letter of intent to acquire Wisepal Technologies, a fabless IC design company specializing in LCD driver ICs based also in Taiwan. The stock purchase exchange ratio was one Himax share for 5.26 Wisepal shares. The purchase of Wisepal will improve the competitiveness of Himax in the small/medium display driver IC market.
As the overall LCD industry begins the long and painful course toward consolidation, so will parts of the supply chain, especially companies that manufacture semiconductor-based parts such as driver ICs. On the other hand, manufacturers that produce optical products such as LCD glass, polarizers, brightness enhancement films, etc. will continue to enjoy good profit margins due to the already oligopoly-like market dynamics.
Source: PR Newswire