AU Optronics Corp (友達光電), the nation’s biggest liquid-crystal-display (LCD) panel maker, said yesterday that the company’s board had given the green light to a NT$200 million (US$6.24 million) joint venture with local electronics maker Qisda Corp (佳世達) to provide better solutions for TV vendors.
AU Optronics plans to spend NT$120 million for a 60 percent share of the new venture in Taiwan, according to a filing to the Taiwan Stock Exchange.
In a separate statement, Qisda said it planned to invest NT$80 million for a 40 percent share of the venture.
“Some of our TV customers have asked us to provide total solutions,” Hsiao Ya-wen (蕭雅文), an official at AUO’s corporate communications department, said by telephone. “AU Optronics has reached a consensus with Qisda to satisfy our customers’ needs.”
“The new company will be formed by the end of the year,” Hsiao said.
Earlier this month, Chinese-language newspapers reported that AU Optronics was in talks to buy a TV production line from Qisda to meet its customers’ demand that it provide TV assembly in addition to supplying them with flat panels.
Hsiao declined to confirm the report.
The two companies are discussing details about the final deal, she said.
The AU Optronics-Qisda deal will be the latest in a slew of strategic alliance between LCD panel suppliers and flat-panel TV makers. On Sept. 1, LG Display Co Ltd said it planned to form a joint venture with Taiwanese TV maker Amtran Technology Corp (瑞軒) to assemble panel modules and flat-screen TVs in China.
Through such alliances, panel makers acquire a captive market for their products and are able to expand their product line-up. TV makers, in turn, are assured of sufficient panel supply during peak season.
“The partnership may not provide a buffer against an industrial slowdown as Qisda only makes 1 million LCD TVs a year, which is quite small in scale,” said Jeff Pu (蒲得宇), who tracks the LCD panel industry for Yuanta Securities (元大證券).
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