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A blue-phase liquid crystal display (BP-LCD) with an in-plane switching (IPS) electrode and etched substrate for generating double-penetrating fringe fields is proposed. An etching depth of 1-2 helps to lower the operating voltage by 30%. This etched IPS BP-LCD also exhibits a wider viewing angle than the conventional one because of the created multi-domain structures in the etched areas. Physical mechanisms responsible for the observed phenomena are discussed.