Quanta Computer to invest in plants

Quanta Computer Inc (廣達電腦), Taiwan's largest notebook computer maker, and affiliated companies will invest NT$300 billion (US$9 billion) to build three plants to make television screens, a Chinese-language newspaper said, citing unidentified company officials.

Quanta Computer, Quanta Display Inc (廣輝電子) and Allied Material Technology Corp (展茂光電) will build the plants to make screen components and assemble finished televisions, the newspaper said, without saying when production will start. By investing in three factories simultaneously, Quanta aims to attract equipment and materials suppliers to open operations near the project, the paper said.

Quanta Computer's unit, Allied Material, which makes color filters that allow LCDs to display a full spectrum of hues, may supply Quanta Display to prevent a shortage of color filters from disrupting Quanta Display's production, the report said.

"The liquid crystal displays industry is extremely capital intensive, because makers need constant investments to make bigger and better screens to stay competitive," said Phil Chen, a fund manager at Grand Cathay Securities Investment Trust Co (大華投信).

AU Optronics Corp (友達光電), Taiwan's biggest maker of flat screens, said it will spend NT$200 billion on a project that will help it enter the television panel business to meet demand from customers such as Dell Inc and Hewlett-Packard Co.