Chimei Innolux Corp (奇美電子), a new entity created from a three-way merger of local LCD panel makers, yesterday said overall revenues may reach more than NT$450 billion (US$14.16 billion) this year, overtaking AU Optronics Corp (友達光電) and making it the biggest LCD panel maker.
The revenue projection is based on the assumption that monthly revenues would return to pre-〝recession levels of between NT$40 billion and NT$50 billion, as the global economy stabilizes this year, chief executive Tuan Hsing-chien (段行建) told a media briefing.
Last year combined monthly revenues were below NT$35 billion during the worst of the economic crisis, Tuan said during the ceremony celebrating the formation of Chimei Innolux.
The forecast greatly exceeds the revenue forecasts from local competitor AU Optronics, which is expected to make NT$391.34 billion this year, as projected by Citigroup in December.
Chimei Innolux, headquartered in Miaoli, is a merger of LCD monitor maker Innolux Display Corp (群創光電), Chi Mei Optoelectronics Corp (奇美電子), the nation's No. 2 LCD panel maker, and handheld device panel supplier TPO Display Corp (統寶光電).
Tuan also said Chimei Innolux planned to build an advanced plant in China to make TV panels.
Chimei Innolux said it has set up a special task force to work on the Chinese investment and some preparation was under way, Tuan said. He declined to specify whether the company was in talks with any Chinese company to build the plant as a joint venture.
Under current regulations, Chimei Innolux would be allowed to build only a 7.5G plant at most.
Earlier this week, AU Optronics led local competitors by submitting a proposal to the Investment Commission to build a 7.5G plant in Kunshan, Jiangsu Province for US$3 billion.
"The Central Science Park Administration used to be cautious about Chinese investment, but AU optronics has stepped up the pace in order to fend off competition from Chimei Innolux, which has set up a strong manufacturing base in China," said Frank Lee (李宜家), an LCD industry analyst with Bank of America Merrill Lynch, at an investment conference on Tuesday.
Chimei Innolux also said it planned to spend more than NT$60 billion on expanding capacity, mostly at an 8.5G plant in southern Taiwan.
AU Optronics, meanwhile, said yesterday in a statement that it planned to invest a total of NT$300.8 billion to build two 8.5G plants in Houli (后里), Taichung County, after the Chinese-language Commercial Times reported yesterday that the company might halt the construction of a second 8.5G plant there due to an environmental assessment dispute.
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