Taiwan's Ministry of Economic Affairs (MOEA) is under policy planning to allow China-based enterprises, especially large vendors of consumer electronics such as Haier, TCL, Changhong, to invest in Taiwan-based TFT-LCD panel makers, according to government officials.
The move is meant to allow Taiwan's LCD industry to have sufficient market demand to support its large production capacity, but investment from China should be made on the condition that Taiwan-based makers will still hold the controlling stakes, the officials said.
The officials noted that Taiwan makers have the second largest share in the global panel market, and if there is not enough demand for their capacity, it will cause serious problem to Taiwan's panel industry. Hence, to secure demand through strategic cooperation or investment will be the best policy to digest Taiwan's panel capacity, the officials added.
In response to speculation that China investors may not be allowed to take more than 20% of the stake of LCD makers, the officials said that details of the policy have yet to be worked out.
But the officials added that it will definitely help the Taiwan panel makers' expansion in the China market and the long-term development of Taiwan's panel industry if China-based TV vendors such as TCL, Haier and Changhong can cooperate with Taiwan's panel makers such as AU Optronics (AUO), Chimei Innolux (CMI) and Chunghwa Picture Tubes (CPT).
Article translated by Yvonne Yu
