Taiwan agrees AUO $800 mn China investment

Jun 22, 2011

Taiwan on Wednesday gave the green light for a project by leading flat-panel maker AU Optronics to spend nearly $800 million on a stake in a Chinese firm, officials said.

Via its Malaysian unit, AUO will spend $796 million on a 49 percent stake in China's Kunshan Long Fei Opto-Electronic Co, the Investment Commission said in a statement.

The government in the eastern Chinese city of Kunshan will control the remaining stake.

"We appreciate the government's decision, which will enable us to migrate to the most advanced technology to tap the world's biggest flat-panel market," AUO spokeswoman Yawen Hsiao said.

Under the project, the partners will build a flat-panel plant introducing so-called "8.5-generation" manufacturing, the most advanced technology available to build displays.

The plant is likely to become operational in 2013, she said.

The approval came after Taiwanese authorities in March relaxed controls on high-tech investments in by local firms in a sign of improved ties with Beijing.

That policy change prompted AUO to put a halt to a previous project, which called for the construction of a $3 billion flat-panel plant using less advanced 7.5-generation technology.

The earlier restrictions had been aimed at keeping the island's most vaunted high technology at home while allowing its flat-panel makers to tap China's vast market.

But calls for easing controls on in the mainland have mounted among Taiwan's high-tech businesses, who argue that their competitors from and Japan have gained the upper hand in China.

Taiwan's opposition, which favours independence from , has repeatedly warned against easing controls, fearing closer economic integration.

China still considers Taiwan part of its territory awaiting to be reunified by force if necessary even though the island has ruled itself since their split in 1949 at the end of a civil war.

Explore further: MasterCard, Zwipe announce fingerprint-sensor card

add to favorites email to friend print save as pdf

Related Stories

Taiwan softens on high-tech investment in China

Mar 08, 2011

Taiwan further relaxed controls Tuesday on high-tech investments in China by local firms, allowing makers of flat-panel television screens to export their most advanced technology to the mainland.

Recommended for you

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

Apple starts iPhone 6 sales in key China market

Oct 17, 2014

Apple began selling its latest iPhone in China Friday, nearly a month after other major territories due to a licence delay by regulators, but it faces a tough battle with rivals led by Samsung in the crucial ...

Microsoft CEO launches diversity training effort

Oct 17, 2014

(AP)—Microsoft CEO Satya Nadella has again apologized to employees and announced in a company-wide memo that all workers will receive expanded training on how to foster an inclusive culture as he works to repair damage ...

Arguments made in ex-dictator's suit against game

Oct 17, 2014

(AP)—A judge has heard arguments from lawyer and former New York City Mayor Rudy Giuliani calling for the dismissal of a lawsuit filed against video game giant Activision by former Panamanian dictator Manuel Noriega.

User comments : 0