Following the recent announcement of the planned merger between FocalTech Systems and Orise Technology, more Taiwan-based touchscreen controller and LCD driver IC vendors are likely to be involved in merger or acquisition deals, according to industry sources.
FocalTech will take over the management of Orise scheduled on January 2015, but the survivor company will continue to use Orise's name for a while after the merger.
Raydium Semiconductor has been indicated to be a target for acquisition as its parent company, the AU Optronics (AUO) Group, has said that it will actively release its holdings in non-core business units in 2014. AUO also holds a minor stake in Orise.
A number of companies, including Elan Microelectronics, Novatek Microelectronics and Himax Technologies, have been indicated as potential buyers for Raydium, the sources noted.
Elan aims to land touchscreen controller chip orders from AUO through acquisition of Raydium, while ramping up its revenues to over NT$10 billion (US$333.44 million) a year, the sources remarked.
But other sources indicated that Raydium, which has been performing well in recent years, has an intention to acquire touch-controller vendor Egalax-empia Technology (EETI).
Article translated by Steve Shen
