AU, Chi Mei seek tie-ups with Chinese firms -paper

TAIPEI, March 30 - Taiwan's two biggest LCD makers, AU and Chi Mei, are seeking tie-ups on panel module production or technology with Chinese appliance makers amid rising demand in China, a local newspaper said on Monday.

AU Optronics Corp, the world's No. 3 LCD maker, is in talks with China's TCL about possible cooperation, while a senior executive from Konka Group has met with Chi Mei executives last week on a potential tie-up on module technology, the Commercial Times said, without citing sources.

The move could pave the way for Taiwanese LCD makers to strengthen their relations with branded companies in China to ensure steady supply of LCDs, the Chinese-language paper said, without giving investment figures.

Some of Taiwan's technology companies, including panel makers, have been enjoying a spate of rush orders from China, where the government is pushing a programme to introduce more electronics goods to smaller cities.

Chi Mei has forecast its LCD panel shipments would rise 20 percent this year with help from Chinese government policy to boost rural consumer spending on electronics

Officials from AU and Chi Mei were not immediately available for comment.

Taiwanese LCD makers are not allowed to set up panel factories in China, but AU and Chi Mei now have factories on the mainland to assemble LCD modules and other key components.