Taiwan-based Teco Electronic & Machinery has set up a LCD TV manufacturing plant in Xiamen, China, with volume production to kick off by the end of 2007 at the soonest, according to the company.

Annual capacity of the Xiamen plant will reach 350,000 units initially, sources said. The company will expand the base depending on the order situation.

Teco is eying the convenience of Xiamen's location, noted the company. In addition, many up stream LCD suppliers are now gathered in Xiamen, stated Teco.

Teco aims to ship 500,000 LCD TVs in 2007 with the OEM/ODM and own-brand ratio being 5:5, said the company. In the oversea market, Teco said it would be focusing on the 40-inch-and-larger TV segment in 2007.