Taiwan MOEA to approve AUO 7.5G investment in China at the end of December - ResearchInChina

Date:2010-12-13liaoyan  Text Size:

After stern criticism about the slow process of the review for panel makers to invest in China from Foxconn Electronics (Hon Hai Precision Industry) chairman Terry Guo, Taiwan's Ministry of Economic Affairs (MOEA) has responded saying that it will approve AU Optronics' (AUO's) project to set up a 7.5G TFT-LCD panel production plant in China by the end of December 2010. Premier of Taiwan's Executive Yuan, Wu Den-yih, also confirmed the approval.

The MOEA indicated that AUO's supplemental documents showed that its meets all requirements, and is expected to be listed for discussion during a committee meeting of the MOEA investment commission in December.

The MOEA noted that AUO is the only panel maker to apply for investment in China. After the application, the MOEA's key technology group will review the project based on the overall economic development of Taiwan and how to improve the competitiveness of Taiwan industries. The time-frame of the review process varies from case to case, and MOEA can only notify applicants when the review is completed. It took longer to review AUO proposal because the investment amount is large, and the committee needs to review the case with a rigorous and prudent attitude.

AUO applied to set up an 7.5G plant in Kunshan, China in March 2010, with the total investment for the plant expected to reach US$3 billion, of which AUO will invest US$1.2 billion. AUO noted that the company will wait until it actually receives notification from the government and then follow the legal procedures to deploy its investment in China.

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