Sat, Aug 19, 2006 - Page 11 News List

Chi Mei plans to invest US$90m in two Chinese plants

STAFF WRITER , WITH AFP

Chi Mei Optoelectronics Corp (奇美電子), the nation's second-largest maker of flat-panel displays, said it will invest an additional US$90 million in two China units, according to a company filing to the Taiwan Stock Exchange yesterday.

The company's board of directors has approved a plan to inject US$60 million into a liquid-crystal-display (LCD) module plant located in Foshan, Guangdong Province, and US$30 million at another LCD module plant in Ningbo, Zhejiang Province, the filing said.

"The investments are still pending approval from the government's Investment Commission," a Chi Mei spokeswoman said.

So far, Chi Mei has invested US$5 million in the Foshan unit and US$90 million in the Ningbo unit, according to the filing.

If the new investment application receives the government's green light, Chi Mei said in the filing that the company will have accumulated investment of up to US$271 million in China.

Earlier this month, Chi Mei said it would team up with TCL Corp, China's biggest publicly traded consumer-electronics maker, in the production of LCD modules there, after the company revealed last month a plan to set up LCD module production plants in the Czech Republic.

According to the company, the Foshan plant in China is scheduled to begin operations by the end of this year with a monthly capacity expected to reach 2 million units by the fourth quarter.

The Ningbo plant is operating at a capacity of 1.35 million units per month. Another facility being built at the same complex is to start operations next year.

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