(Yicai) March 26 -- Chengzhi, a Chinese supplier of semiconductor display materials, will buy 1,183 liquid crystal material patents from Japan's DIC for nearly JPY5 billion (USD32.8 million) to ensure the security of its related business.

The patent rights are in multiple countries and regions, including the Chinese mainland, the United States, Japan, South Korea, Taiwan, Europe, and India, with the average term ending in 2034, Chengzhi said late yesterday. An asset appraiser valued the patents at CNY270 million (USD37.4 million), it added.

DIC has been in the liquid crystal materials business for years and has a wealth of related patented technologies, noted Nanchang-based Chengzhi, which is under the control of Tsinghua University.

Together with its own patents, Chengzhi’s unit Shijiazhuang Chengzhi Yonghua Display Materials will have an industry-leading patent layout after the transaction, which will help consolidate its position in the market of liquid crystal materials and support business development, it added.

Chengzhi Yonghua Display makes liquid crystal materials and is the world's largest supplier of materials for twisted nematic and super-twisted nematic displays, according to its parent firm’s 2023 financial report. The unit is preparing a spin-off and separate stock market listing, it added.

Chengzhi's stock [SHE: 000990] fell 1.4 percent to close at CNY7.10 (98 US cents) in Shenzhen today, after earlier dropping by as much as 2.6 percent.

Editor: Martin Kadiev