Market rumors indicate that Taiwan Ministry of Economic Affairs (MOEA) may allow China-based TV vendors to joint-invest in Taiwan panel makers as long as the stake is no higher than 20% or become the largest shareholder.

AU Optronics (AUO) and Chimei Innolux (CMI) are optimistic about the suggestion and emphasized that it would help to improve the competitiveness of Taiwan-based panel makers.

AUO indicated that the company always holds a positive attitude toward open investment. In fact, AUO chairman KY Lee previously urged the Taiwan government to allow investment and take LG Display's 8.5G plant in Guangzhou, China, which allows investment from Skyworth and the local government, as an example and allow Taiwan panel makers more flexibility to operate.

CMI is also optimistic about the chance of a policy change. General manager Wang Jyh-chau for the South Branch of CMI once noted that CMI is looking to set up a 8.5G plant in China, and although the company hasn't receive approval, it is in talks with several TV vendors for joint investment. CMI not only wishes the Taiwan government to remove the previous-generation and investment limitations on panel makers, but also wish the ECFA to add panel to the list of industries free of tariff.

HannStar Display added that most of its downstream clients are in China, investment from China-based TV vendors will help to consolidate upstream and downstream players and improve the competitiveness of Taiwan panel makers.