HSINCHU, TAIWAN: Newly merged Taiwanese LCD panel maker Chimei Innolux said on Thursday it sees capital spending this year for its 8.5 and 6 generation lines reaching at least T$40 billion ($1.3 billion).

The LCD maker also expected sales each month to come in at T$40-T$50 billion, executives told a news conference marking the start of the merger company on Thursday.

In November, Chi Mei agreed to merge with Innolux through a share swap to create the island's largest LCD panel maker, aiming for a stronger foothold in the highly competitive LCD industry which is dominated by the world's two biggest makers, South Korea's Samsung and LG Display.

The merger was the latest alliance in Taiwan's LCD industry, where smaller companies are trying to boost their economies of scale to better compete.