Powerchip of Taiwan is to set up a joint venture fab in China, reports Digitimes.
The 40k wafer a month fab will cost $2 billion and run 90nm, 110nm and 150nm processes.
The fab will act as a foundry for LCD driver chips.
Powerchip is to provide the process technology and a small amount of capital while its jv partner Hefei Construction Investment and Holding will provide most of the funding and hold a majority stake in the jv.
The plant is expected to run its first silicon in 2018-19.
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