Small- to medium-size TFT-LCD panel and electrophoretic display (EPD) maker E Ink Holdings will invest US$6.61 million to set up a subsidiary in China to design and develop e-book readers for the local education market, according to the company.

Details pertaining to the subsidiary will be mapped out later, the company said.

In its capacity as the world's largest EPD supplier and with the ability to produce TFT-LCD panels in-house, E Ink will have a cost advantage to venture into the production of e-book readers, asserted industry sources.