AU Optronics plans LCD panel plant in mainland China

Sep. 4, 2009 (China Knowledge) - Taiwan-based AU Optronics Corp, the world's third-largest LCD maker by revenue, is planning a new LCD panel plant in mainland China as it expects China to become the world's biggest TV consumer in two to three years, Reuters reported.

The company has been invited by mainland city governments such as those of Beijing, Tianjin and Shanghai to invest in panel production, even though the local government in Taiwan still prohibits investment in panel production, AU Chief Financial Officer Andy Yang said Wednesday.

Yang also said that the company hopes regulators in Taiwan will change the rules that permit investment in LCD panel assembly in mainland China but not investment in LCD panel production.

The company doesn’t rule out other forms of strategic cooperation, and may even build the plant itself instead, said Yang.

AU Optronics posted NT$6.6 billion in net loss for the second quarter of this year, whereas it posted NT$20.2 billion in net loss a quarter earlier.