Intel Corp, the world's largest chip maker, recently invested nearly NT$800 million in Ritek Display Technology Corp, a subsidiary of Ritek Corp (
Ritek Display confirmed the investment yesterday following several days of speculation and local media reports.
Intel's investment gives it an 8.8 percent stockholding in the panel display maker, local media reported, and is a large contribution to Ritek Display's plan to raise NT$2 billion in the third quarter of the year to fund future expansion.
"In the currently depressed economic climate, for a well-known company like Intel to invest in this industry shows that the sector has received international interest and approval," an official at Ritek said yesterday.
Intel's investment comes after ViewSonic Corp, a leading monitor vendor and LCD brand in the US, expressed an interest in Ritek Display in August. "ViewSonic plans to invest in the company next month," the Ritek official said.
Ritek Display, in which Ritek Corp owns a majority stake, plans to use the capital raised to build a second production line. The new line is scheduled to start production in the first quarter of next year.
Ritek Corp, the world's largest recordable compact disc maker, obtained a license from Eastman Kodak Company in June to use its OLED technology in flat panel OLED displays. The technology allows for an electric current to be passed through a flat panel display and be converted into full color, high-resolution image displays.
"The display is special because of its wide-view angle, low power consumption and quick response time," the official said, adding that its performance is better than other similar liquid crystal displays.
The company hopes the small panel screens will replace super-twisted nematic LCDs in mobile phones, personal digital assistants and other handsets.
According to local media reports, Intel's investment in Ritek Display is partly for financial gain, but also because it plans to co-develop the OLED technology with the Ritek subsidiary.
Intel plans to incorporate Ritek Display's OLED technology in a new product idea, the Digitimes reported, without naming sources.
"We can't say too much," the official at Ritek said, when asked about Intel's development plans. Ritek intends to make an official announcement with Intel next week about the cooperation between the two companies, the official said.
Still, while no formal announcement has been made, Intel's investment in Ritek Display marks a show of confidence in the company and its development plans, analysts said.
Few companies in Taiwan have such agreements with Intel, they noted.
"Only Ritek and Pioneer are currently making OLEDs," said Andy Chen, an analyst at Jen Hsin Securities. "Foreign investors are looking quite favorably on its development and prospects," he said.
The technology is facing some development problems, analysts and Ritek said, and output volume is low.
Nevertheless, since the product is considered to have good future prospects, Intel's investment is not so surprising, analysts said.
"If Ritek asks Intel to participate, I shouldn't refuse, especially if the price is very low," said Richard Wu, an analyst at International Securities Co.
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