Taiwan-based home appliance maker Teco Electric & Machinery has decided to invest US$20 million in US-based display specialist Syntax-Brillian in a joint effort to expand the presence of Olevia-branded LCD TVs in the North American market.

With the investment, Teco is likely to take a 3.5% stake in Syntax-Brillian, and in so doing, team up with Taiwan-based Kolin, which holds about 7% of Syntax-Brillian's shares. Kolin makes most Olevia-branded LCD TVs for Syntax-Brillian.

Display products offered by Syntax-Brillian include Olevia-brand LCD TVs and liquid crystal on silicon (LCOS) TVs.

Teco said its LCD TVs will continue to be sold in Taiwan under the Teco brand, but will adopt the Olevia brand name in North America.

Teco chairman CK Liu said the company expects the new partnership will drive the sales momentum of Teco products in the initial stages, and will later give extra push for the company towards further diversification.

Kolin chairman CL Liu said Syntax-Brillian has established a strong marketing platform in North America. He said the cooperation between Teco, Kolin and Syntax-Brillian will integrate resources, setting a new paradigm for Taiwan-based vendors of domestic home appliance brands.

Syntax-Brillian COO James Li said the company shipped 600,000 Olevia LCD TVs in the first half of 2007, and the shipment goal of the entire year is 1.2 million units. Li expects the cooperation between the three companies to benefit all three.

Industry observers said the Teco investment will ease pressure on Syntax-Brillian operations, as the LCD TV supply chain is a long one that requires considerable sums of funding to maintain. As LCD TV sizes grow bigger, brand-name vendors need more funding, the observers added.

Teco's partnership with Syntax-Brillian may also extend to other products in the future. Kolin has said that it is considering making digital photo frames to be marketed through Syntax-Brillian.