With AU Optronics (AUO) getting ready to set up a 7.5G TFT-LCD panel production plant in Kunshan, China, its subsidiaries are also gearing up to follow, and the panel maker's color filter affiliate Toppan CFI will invest US$167 million to set up a production plant nearby.

AUO noted that more panel component suppliers will follow Toppan CFI and go to China, which will further help the development of Taiwan's panel supply chain in the future.

AUO's major component suppliers also include BenQ Materials, Lextar Electronics, Wellypower Optronics, Cando, SiPix and Twoway Communications.

AUO estimated the global LCD TV market to reach 220 million units in 2011, while China will reach 45 million units, and up to 60 million units in 2015.

Increasing demand in China is the main attraction for global panel makers to invest in China, but in the mean time, China's own panel capacity is also increasing rapidly. AUO expects China's TFT-LCD panel capacity to increase at a CAGR of 82% in 2010-2015.