Thursday, December 30, 2010

More breathing room, please!

l  After being granted approval by Taiwan's Ministry of Economic Affairs (MOEA) last week to set up a US$3 billion manufacturing plant in China, AU Optronics (TWSE AUO 2409) urged the government this week to relax restrictions over Taiwan LCD panel-display makers’ investment in China so that they can better compete with South Korean suppliers in the mainland market.

l  Furthermore, AUO suggested that the current ban on the display-panel manufacturers’ investments in their Chinese counterparts should also be removed. In response, the MOEA has pledged to review and consider such a request.

l  Since its investment plan was eventually approved after under MOEA review for almost a year, AUO felt the island’s LCD flat-panel makers have already missed the most timely period for setting up production facilities in China.

l  Worse yet, while Chinese authorities were expected to give swift approval to investment plans like AUO’s when the application was first submitted to MOEA nearly a year ago, China could now delay the process of approval because the mainland already has its own LCD display plants with relatively advanced technologies.

l  Other Taiwanese industries, particularly petrochemical and solar energy, may experience the same fate if the current ban on investment in China continues.

Interested in subscribing ETRC reports and services?
Please contact us at:

No comments: