Chi Mei applies for China investment

The Ministry of Economic Affairs yesterday confirmed that Chi Mei Optoelectronics Corp (奇美電子) has applied to the government for approval of a US$2 million investment in an electronics distribution company in China.

"We have received the application from Chi Mei and the case is now entering into a review stage," Chang Ming-pin (張銘斌), deputy executive secretary of the ministry's Investment Commission, told the Taipei Times in a phone interview. "We expect to finish the review and announce the result in a month."

Chi Mei is planning to set up a distribution company in China and use it to source cost-efficient components for flat panels made there, for final assembly in Taiwan's Southern Science Park (南部科學園區).

The investment plan was earlier reported by a Chinese-language newspaper, which cited Chi Mei vice president Lin Rong-chun (林榮俊).

The news raised eyebrows in Taiwan, as just a few days ago Chi Mei founder Hsu Wen-lung (許文龍) said in an open letter that he did not support Taiwan's independence, as it could lead to war and disaster.

Many speculate that his remarks were actually made in exchange for business sweeteners from Beijing.

Neither Lin nor another company vice president, Jeff Hsu (許春華), were available for comment yesterday.