Taiwan's Chimei plans to spin off touch panels

TAIPEI, TAIWAN: Chimei Innolux, Taiwan's largest LCD maker, plans to spin off its touch panel business as early as the second half of this year, a source with direct knowledge told Reuters on Tuesday.

"The company has kicked off the IPO process, it may launch an offering as early as the second half of this year," the source said, declining to be identified as the plan has not been made public.

Chimei declined to comment.

The source said Chimei Innolux seeks further consolidation after its creation last year through the merger of Chi Mei, Innolux and TPO Display, as the merger failed to deliver the expected synergies.

The company posted a loss in the third quarter of last year.