TPK Holding approved acquiring a 23.83% stake in display driver IC maker ITH for NT$58.07 billion ($1.88 billion), marking the touch panel manufacturer’s attempt to pivot into semiconductors as its core business stagnates.
The transaction involves purchasing seven offshore subsidiaries from Dongbo Capital and Zhongfang Capital that hold 117.32 million ITH shares at NT$49.5 per share, TPK said in a statement. The deal, payable in U.S. dollars offshore, should close by January 2026.
TPK will gain three board seats at ITH, while current Chairman Wayne Liang and President Tai-Yuan Chen will remain in their positions. Chairman Chiang Chao-jui acknowledged TPK faces constrained growth momentum due to mature touch technology and industry saturation, prompting the search for transformation opportunities.
The acquisition price represents a substantial premium given ITH’s recent market performance. Founded in 1994 and re-listed in November 2024 after an eight-year consolidation, ITH specializes in display driver integrated circuits for smartphones, laptops, and automotive applications.
TPK’s revenues have declined, with February 2025 sales down 10% year-over-year to NT$4.15 billion. The company’s market capitalization stands around NT$13.5 billion, making this acquisition more than four times its own value.
While Chiang cited AI and consumer electronics growth supporting semiconductor demand, TPK’s ability to integrate a significantly larger business remains untested. The display driver IC market faces intense competition from established players and pricing pressure from Chinese manufacturers, despite projected 7% annual growth through 2030.
