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Digitimes Research: Silicon Works expected to expand non-LCD driver IC revenues thanks to LG
Ricky Tu, DIGITIMES Research, Taipei [Tuesday 14 October 2014]

Although Silicon Works' revenues from the LCD driver IC (LDI) business dropped 8.1% on year and reached KRW128.7 billion (US$120 million) in the first half of 2014 because of two consecutive quarters of decline in iPad shipments, the company is expected to be able to expand its revenues from non-LDI product lines such as LED driver ICs and car electronics ICs in the future as it became a subsidiary of the LG Group in the second quarter of 2014.

Silicon Works' revenues from non-LDI product lines were higher than those of other major Taiwan and Korea makers during the first half of 2014, with a revenue proportion of 24.3%. The company is expected to continue supplying timing controller (TCon) applications to LG Display in the future in addition to LED driver ICs, car electronics ICs and power management IC applications.

Digitimes Research also expects the company to supply various touch IC solutions to LG Electronics and LG Chemical as a result of LG's stake in the company, which will push up its revenue proportion of non-LDI products in the future.

Digitimes Research also noted that Silicon Works' operating profits increased to 6.5% in the first half despite its revenue decline.

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