TAIPEI (Taiwan News) — Taiwanese touch panel maker TPK Holding Co. announced Thursday that it will acquire a 23.83% stake in display driver integrated circuit manufacturer Ili Technology Corp. (Ilitek), becoming the company’s largest shareholder.

The investment marks TPK's entry into the semiconductor sector, which Chair Chiang Chao-jui (江朝瑞) described as a stable-growth industry driven by advances in AI and consumer electronics.

The acquisition involves purchasing all shares in seven overseas subsidiaries, indirectly granting TPK more than one million Ilitek shares. The deal is valued at NT$5.8 billion (US$187.5 million), or NT$49.5 per share.

Chiang said the company has long focused on touch technology research, development, and manufacturing. With industry maturity and evolving technology limiting growth, TPK has been exploring new transformation opportunities.

Ilitek, a leading display driver integrated circuit manufacturer, is known for its technical expertise and strong customer relationships. Chiang expects the company’s strengths to complement TPK’s capabilities, potentially creating synergies in technology and market expansion.

Display driver integrated circuits, or DDIs, are specialized integrated circuits that control display panels, motors, and other electronic devices. They convert digital signals from processors or controllers into signals that devices can interpret, enabling proper operation, according to Digitimes.

The global DDI market is projected to grow from US$7.46 billion in 2022 to US$12.56 billion by 2029, representing a compound annual growth rate of 7.73%, according to Uanalyze.