Chimei Innolux (CMI) has received an official notification of an antitrust fine from the European Commission (EC), but the company will definitely appeal against it, according to company chairman Liao Ching-Siang.

But Liao added that CMI may still set aside EUR300 million (US$396.3 million) for the fine from its fourth-quarter 2010 finances, which may result in losses for the entire year.

Foxconn Electronics (Hon Hai Precision Industry) chairman Terry Guo and Liao recently went to the European Economic and Trade Office trying to better understand the EC charge and fine, and later made several demands.

They want to know how EC arrived at the decision for a case spanning from 2001-2006, while CMI is an entirely new company formed only at the beginning of 2010. Foxconn is a major shareholder of CMI, which came into being in March 2010 through a merger of Chi Mei Optoelectronics (CMO), Innolux Display and TOP Displays.

They ask EC to explain how CMI was given the highest fine among all parties involved when CMO's revenues from Europe were not very high in 2001-2006.

CMI chairman Liao Ching-Siang
Photo: CJ Liu, Digitimes, December 2010