Renesas Technology Corp, Sharp Corp. and Powerchip Semiconductor Corp are teaming for a joint venture focused on drivers and controllers for small- and mid-size LCDs.

In doing so, Renesas and Sharp will consolidate their business operations in the field to create the new company, Renesas SP Drivers Inc, which will design, develop, sell, and market the drivers and controllers. Powerchip Semiconductor, one of the investors in the new company, will handle most of the actual production, according to a joint statement from the three companies today.

Related Renesas business operations will be transferred to Renesas SP Drivers in April, with Sharp doing so later in 2008. Renesas SP Drivers will be a fabless semiconductor manufacturer based in Tokyo and will begin full operations on April 1 with 170 employees and more than $46.2 million (5 billon yen) in capital.

Broken out, Renesas will take a 55% ownership, Sharp a 25% stake, and Powerchip a 20% share in Renesas SP Drivers.

The three companies said they are establishing the joint venture to respond to growing competition, to improve cost competitiveness, and to increase design capabilities. The trio also noted small- and mid-size LCD market expansion brought on mobile phone sales growth from emerging markets, including China and India.

By: DocMemory
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