AU Optronics Corp (友達光電), the nation’s largest liquid-crystal-display (LCD) panel maker, is finalizing details on establishing a 7.5-generation plant in eastern China, a company official said.
“We are still preparing the final details for the submission,” company marketing manager Freda Lee (李秀芬) said by telephone yesterday. “We will submit the proposal as soon as possible.”
AU Optronics is aggressively moving into the Chinese market after new measures easing restrictions on Taiwanese panel and semiconductor manufacturing investment in China took effect this week.
The company, which has a complete supply chain, is evaluating potential sites in eastern China, and to stay close to its LCD module plant in Suzhou. Possible locations include Kunshan and Suzhou, it said.
Taiwanese panel makers were previously banned from setting up LCD panel production lines across the Strait. They had to ship panels produced in Taiwan to China, then assemble them with the modules manufactured there.
AU Optronics said it would be more cost-efficient to do all the production in China to enable direct delivery of the finished products to Chinese TV makers.
The company’s board approved the plan to invest US$1.2 billion for the 7.5-generation plant on Wednesday.
The Investment Commission, which is in charge of approving China-bound investments, has said it generally takes more than a month to assess whether a submission passes the mandatory requirements.
Separately, Powerchip Semiconductor Corp (力晶半導體), the nation’s second-largest computer memory chipmaker, said on Wednesday it would invest US$15 million to set up an LED factory in China, as it diversifies into the sustainable energy sector.
The company’s plant will be located in Xuzhou, Jiangsu Province.
Powerchip said it was still assessing the feasibility of setting up an 8-inch wafer fab in China.
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