Taiwan considers letting China invest in LCD panels

In search of capital for equipment upgrades, Taiwanese LCD panel makers are looking to China for funding

Taiwanese officials are discussing ways to let investors from mainland China buy stakes in the island's LCD panel makers, an economics ministry representative said on Monday. Taiwan is weighing the political risk of Chinese investment against local businesses' need for capital to fund equipment upgrades.

The Ministry of Economic Affairs Investment Review Board is studying how much of an investment Chinese companies should be allowed to make, the representative said. He declined to specify options on the table, but local media say Chinese investors' holdings in Taiwanese companies would be capped at 20 percent.

Taiwanese LCD panel makers want additional capital to fund their frequent and expensive equipment upgrades, and probably pressured the government to consider China, analysts say.

Taiwan's LCD panel industry was worth NT$1.32 trillion (US$45 billion) in 2009, with AU Optronics and Chimei Innolux among the best-known manufacturers. They sell panels to the makers of monitors, handheld devices andstate-of-the-art televisions.

"Taiwan panel makers are lacking money," said Liang Kuo-yan , president of Polaris Research Institute in Taipei. "They're always upgrading equipment from one generation to the next. I think they need the investment from mainland China."

China and Taiwan have been separately ruled since the 1940s, but Beijing claims the island as part of its territory.

Although two-way trade ties have picked up through landmark talks since 2008, Taiwanese officials remain nervous about relying on China's rich and often state-owned firms for financial support.

Taiwanese firms that allow Chinese investment may need to open board seats to their Chinese supporters, giving them access to a full range of information -- including secrets -- about the company.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags regulationComponentsAU OptronicsgovernmentChimei InnoLuxdisplays

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ralph Jennings

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?