It is thought that the move will help ensure that Qualcomm are well positioned to tap into growing demand for portable devices such as such as e-readers by investing in the new plant at Hsinchu Science Park in northern Taiwan.
The new display plant will use power saving Mirasol technology to focus of the production of smaller panels which are suitable for mobile phones and navigational devices, as well as e-readers, according to Reuters.
The plant will occupy a seven hectare plot land, though it is unclear exactly when construction will begin.
Qualcomm, the world’s largest manufacturer of mobile chips, will help boost display technology and create job opportunities in the country which is also home to Chimei Innolux and AUO – the world’s third and fourth largest LCD makers.
Qualcomm will develop the Mirasol technology which enables feautures that are aimed at e-reader devices, such as lower power consumption and no backlighting, in a bid to rival firms such as Acer, Asustek and Delta Electronics which have also recently released electronic reader that allows users to download and read books and magazines.
The firm has previously been involved in the development of the the MEMS technology in a joint venture with Taiwanese firm Cheng Uei Precision Industry to manufacture Mirasol display on a smaller scale for handsets.