Nod for AUO's US$3b Kunshan plant
By Zhu Shenshen |
December 18, 2010, Saturday
|
Print Edition
Print Edition
TAIWAN-BASED AU Optronics Corp (AUO) has been approved by the island's authorities to build a US$3 billion LCD panel plant in Kunshan, Jiangsu Province, the first 7.5-generation plant invested by a Taiwan firm on the Chinese mainland.
The liquid crystal display plant represented the island's relaxation of investment restrictions on the mainland and its approval was seen as a bid to maintain the island's technology edge amid rising competition from South Korea, industry insiders said.
"As a global strategy, it's urgent for us to invest in the Chinese mainland to catch up with rivals," said AUO, the world's No. 3 LCD panel maker, in a statement yesterday. "We suggested the (Taiwan) authorities relax restrictions on such investments."
South Korea's Samsung and LG Display, which are the world's top two LCD panel makers, said on December 2 that they had approval to invest a total of more than US$6 billion to build two advanced panel plants on the mainland.
The new plant on the mainland will also help AUO work closer to clients and reduce transport costs, analysts said. AUO now operates an 8.5-generation plant in Taichung in central Taiwan.
These next-generation LCD panel plants allow firms to make bigger-sized LCD screens to meet demand for TVs of 40 inches or above. Most LCD facilities on the mainland now are fifth or sixth generation, according to experts.
The mainland will rank as the world's biggest market in 2011 for LCD TV sales when 50 million units are likely to be sold. In 2010, LCD TV sales are seen at 30 million to 40 million units, AUO said.
AUO also plans to build two new plants in Taiwan to make 11th-generation panels, according to the island's investment commission.
The liquid crystal display plant represented the island's relaxation of investment restrictions on the mainland and its approval was seen as a bid to maintain the island's technology edge amid rising competition from South Korea, industry insiders said.
"As a global strategy, it's urgent for us to invest in the Chinese mainland to catch up with rivals," said AUO, the world's No. 3 LCD panel maker, in a statement yesterday. "We suggested the (Taiwan) authorities relax restrictions on such investments."
South Korea's Samsung and LG Display, which are the world's top two LCD panel makers, said on December 2 that they had approval to invest a total of more than US$6 billion to build two advanced panel plants on the mainland.
The new plant on the mainland will also help AUO work closer to clients and reduce transport costs, analysts said. AUO now operates an 8.5-generation plant in Taichung in central Taiwan.
These next-generation LCD panel plants allow firms to make bigger-sized LCD screens to meet demand for TVs of 40 inches or above. Most LCD facilities on the mainland now are fifth or sixth generation, according to experts.
The mainland will rank as the world's biggest market in 2011 for LCD TV sales when 50 million units are likely to be sold. In 2010, LCD TV sales are seen at 30 million to 40 million units, AUO said.
AUO also plans to build two new plants in Taiwan to make 11th-generation panels, according to the island's investment commission.
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