Taipei, Oct. 29, 2012 (CENS)--Chimei-Innolux Corp., under Hon Hai Group, is reportedly in talks with China Electronics Panda Crystal Technology (CEC Xtall) and Hisense Group of mainland China for cooperation in the forms of investment or alliance, which, if materialized, will usher in a new era for Taiwan and mainland Chinese FPD (flat panel display) firms to join forces in coping with the competition of Korean rivals.
Lin Chen-hui, assistance vice president and spokesman of Chimei-Innolux, reported that ranking officials of CEC Xtal and Hisense did visited the company's headquarters in Chunan, northern Taiwan, and factories in Southern Taiwan Science Park recently, refusing, though, to associate the visits to their reported plan to buy into Chimei-Innolux.
The interest of the two mainland Chinese firms in investing in Chimei-Innolux is fueled by the government's plan to relax the restrictions on investment by Chinese firms in Taiwanese FPD firms and the improvement of Chimei-Innolux's business performance, which turned into the black in September. CEC Xtal is a subsidiary of China Electronics Panda Information Industry Group, a leading information technology group in China. In addition to CEC Xtal, China Electronics Panda Information Industry Group also owns Great Wall Computer and TPV Technology, the world's largest monitor manufacturer.
Hisense Group, a leading color-TV maker in China, is also reportedly interested in acquiring Chimei-Innolux's LCM (liquid crystal module) plant in Ningbo, Zhejiang Province, a move which can help Hisense solve its insufficient capacity for LCM and cut color-TV production cost.
(by Philip Liu)