News & Events

Acer to acquire stake in display driver IC company

Acer has disclosed plans to acquire a stake in FocalTech Systems, a Taiwan-based display driver IC supplier, for up to NT$1.5 billion (US$53.21 million).

Acer considers the deal as a long-term investment, according to a company filing with the Taiwan Stock Exchange (TWSE) on April 19.

Based on FocalTech's share price on the TWSE, Acer is expected to take up an estimated 3-4% stake in FocalTech, according to market sources. Investing in FocalTech may assist Acer in securing more display driver IC supplies for its PCs and other products, the sources said.

Acer has been able to fulfill only 30% of total notebook orders it has received due to shortages of related ICs, company chairman and CEO Jason Chen was quoted as saying in previous reports.

In addition, FocalTech's shareholder Egis Technology (EgisTec) announced on April 16 plans to sell its stake in FocalTech. EgisTec, which holds an around 16.14% stake in FocalTech, expects to recognize NT$5-6 billion in gains from the share disposal.

EgisTec and FocalTech in May 2020 formed an alliance to develop next-generation fingerprint, touch, display driver integrated (FTDDI) chips, but the partnership has ended due to "a rapidly changing market" which the goal of the partnership cannot respond to, EgisTec said.