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Mainland, Taiwan firms sign LCD panel deal

By Wang Xing (chinadaily.com.cn)
Updated: 2009-01-19 16:33

Nine Chinese mainland television set producers have signed a strategic supply contract with Taiwan's two biggest LCD makers to purchase $2.19 billion worth of flat-panel display.

Under the contract, mainland major TV makers, including TCL Multimedia, Skyworth Digital and Konka Group will buy a total of 120 million units of liquid crystal panels from AU Optronics Corp and Chi Mei Optoelectronics Corp at an average price that is 59 percent higher than last year.

The deal is seen to reflect warming Cross-Straits ties between Taiwan and Chinese mainland after Taiwan leader Ma Ying-Jeou took office eight months ago.

Lou Qinjian, vice minister of the industry and information technology, said at the signing ceremony on Jan 16 that LCD companies across the Taiwan straits have a unique complementary advantage with each other. He said companies from both sides should join hands in the fight against the global economic slowdown.

Supplying most of their liquid crystal displays to top PC brands such as Dell and Hewlett-Packard Co, AU Optronics Corp and Chi Mei have been hit by the financial crisis.

But demand in the mainland are expected to be boosted by the government plan to offer 13 percent discount to farmers in 14 provinces on purchases of TVs, home appliances and mobile phones.