Innolux considers building LCD China plant

TAIPEI, TAIWAN: Innolux Display, the LCD panel arm of Hon Hai Group, will consider building a factory in China, Group Chairman Terry Guo said.

His comments come hours after the Taiwan government announced measures to ease restrictions on Chinese investments by the LCD and chip foundry sectors.

"If everything is legal, we will first consider China," the chairman told Reuters on the sidelines of a company event late on Wednesday.

Bigger rival AU Optronics said on Wednesday it would apply to the government to set up a more advanced 7.5th-generation facility in China as soon as possible.

Taiwan firms, including AU, have urged the government to allow them to invest more on the mainland or use more advanced technologies to cut costs and compete with South Korean rivals.

Shares of Innolux ended up 0.6 per cent on Wednesday, while the broader market jumped 1.1 per cent.