Taiwan Approves AU Optronics Mainland LCD Plant Proposal
Sohu IT, 12/12/10
Hwang Jung-Chiou, vice minister of Taiwan's Ministry of Economic Affairs, has revealed that Taiwanese LCD panel maker AU Optronics' plan to invest in a mainland LCD panel factory will be approved by the end of December at the latest. Taiwanese LCD manufacturer Chimei Innolux has yet to apply.
Premier Wu Den-yih recently responded to criticism from Terry Gou, chairman of Taiwanese electronics manufacturer and Foxconn (2038.HK; 2354.TW) parent firm Hon Hai Precision Industry (2317.TW), that Taiwan has prevented LCD panel manufacturers from establishing production facilities in mainland China. Wu said that AU Optronics' proposal was initially rejected because it was an equity partnership and not investment, but the application was approved the second time.
Wu added that the companies must pledge not to reduce their existing level of investment or employment in Taiwan, nor transfer capital to mainland China originally intended for investment domestically.
Editor's Note: For more background on this topic, please see "Taiwan May Allow LCD Firms to Acquire Mainland Plants" MD 9/26/10 issue.
Keywords: Hwang Jung-Chiou regulation overseas Terry Gou hardware Foxconn 2038.HK 2354.TW Chimei Innolux LCD Taiwan Hon Hai 2317.TW Wu Den-yih production facility AUO cross-straits investment
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