LCD panel maker Chimei Innolux (CMI) plans to launch a capital expansion project through a rights issue and the issuance of global depositary receipts (GDRs), with the number of new shares issued for the expansion project set to no more than one billion.

With a closing price of NT$32.20 recorded by CMI's shares on the Taiwan Stock Exchange (TSE) on April 13, CMI could raise up to NT$32.2 billion (US$1.11 billion). CMI said it plans to use the newly raised capital for factory expansion, new equipment purchases, investment and strengthening its financial structure.

The capital expansion project is still subject to approval from shareholders. The company is scheduled to hold a shareholders meeting on June 28.

CMI has recently stepped up its marketing of 3D TV panels in the China market, aiming to ship three million units of such panels in the market in 2011.