With AU Optronics (AUO) receiving permission from the Taiwan government to set up a 7.5G TFT-LCD panel production plant in China, Chimei Innolux (CMI) has reiterated that it will go to China but is still evaluating when is the right time to do so.

CMI chairman Liao Ching-Siang indicated that China is an important market for the panel industry, with Samsung Electronics, LG Display and AUO set to construct plants in China.

CMI will definitely set up LCD production facilities in China, but as a next-generation plant will need a huge amount of investment, CMI is still evaluating such a move, Liao said. Currently CMI's main focus remains on expanding its capacity at the 8.5G plant at the Kaohsiung Science Park (KSP), the chairman added.

China plans to increase the import tariffs of cell panels and LCD modules (LCMs) to 8%, which would make it almost impossible for panel makers who do not have production plants in China to compete in the China market. Liao said the Taiwan government's next move should be towards achieving tariff-free benefits for Taiwan panel makers.

With AUO receiving the approval, market rumors have claimed that that CMI will submit its application for setting up a 7.5G plant in China in the first quarter of 2011 in order to catch up with Samsung, LG Display and AUO. However, CMI has not confirmed the rumors.