Chimei Innolux (CMI) has submitted its application for the establishment of an 8.5G flat panel plant in China to the National Development and Reform Commission for approval, according CMI president Wang Jyh-chau.

CMI will not rush to build the planned 8.5G plant in China due to a current oversupply of flat panels, but it has to secure a license to catch up with rivals such as LG Display, Wang noted.

CMI's total investment in China reached US$1 billion as of the end of 2010. The company plans to add an additional investment of US$500 million to ramp up its backend module capacity soon, according to industry sources.

However, CMI will need to pour in an extra of US$3-4 billion in capital for front-end panels production, the sources noted.