AU Optronics Corp (AUO, 友達光電), the nation’s No. 2 LCD panel maker, yesterday said its board had approved plans to build two TV panel module assembly joint ventures in China, aiming to strengthen its presence in the fast-growing Chinese market.
The investments with Chinese TV makers TCL Multimedia Technology Holdings Ltd and Haier Group (海爾) are the latest efforts by AU Optronics to deepen its partnership with Chinese TV makers to fend off growing competition from the newly merged Chimei Innolux Corp (奇美電子).
Last summer, AU Optronics formed a TV panel assembly venture with a smaller Chinese TV maker, Changhong Electric Co (長虹), in Sichuan Province, China.
“With the new business model of allying with its leading brand customer, AU Optronics can not only ensure stable product shipments, but also provide TCL on-time and value-added services to seize global business opportunities together,” a company statement said yesterday.
AU Optronics and a TCL subsidiary, TCL King Electrical Appliances (Hui Zhou) Co (TCL, 王牌電器), plan to invest US$12 million initially on the TV panel module assembly venture in Guangdong Province, the statement said. AU Optronics would own 51 percent of Huizhou Bri-King Optronics Co Ltd (智翔光電), while TCL King Electrical would hold 49 percent.
Last year, AU Optronics grabbed a 15 percent share of the Chinese LCD TV panel market, lagging far behind the combined market shares of Chi Mei Optoelectronics and Innolux, which captured 31 percent, figures from market researcher DisplaySearch showed.
TCL, the third-largest LCD TV maker in China, shipped 4.6 million LCD TVs last year and aims to expand shipments to at least 6 million units this year, DisplaySearch said.
In a separate statement, the Hsinchu-based panel maker said the board also gave the go-ahead to set up another LCD TV panel module factory with Haier in Qingdao, Shandong Province, with initial investment totaling US$7 million.
AU Optronics would hold 70 percent of the venture, Qingdao Haier Optronics Co Ltd (青島海爾光電), while Haier would own 30 percent. Haier ranks No. 6 among Chinese TV makers.
It plans to ship 2 million LCD TVs this year, up from last year’s 1.3 million units, DisplaySearch said.
AU Optronics’ board also approved issuing up to US$800 million in corporate bonds and will use the proceeds to buy equipment.
STIMULUS PLANS: An official said that China would increase funding from special treasury bonds and expand another program focused on key strategic sectors China is to sharply increase funding from ultra-long treasury bonds this year to spur business investment and consumer-boosting initiatives, a state planner official told a news conference yesterday, as Beijing cranks up fiscal stimulus to revitalize its faltering economy. Special treasury bonds would be used to fund large-scale equipment upgrades and consumer goods trade-ins, said Yuan Da (袁達), deputy secretary-general of the Chinese National Development and Reform Commission. “The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives,” Yuan said. Under the program launched last year, consumers can
Citigroup Inc and Bank of America Corp said they are leaving a global climate-banking group, becoming the latest Wall Street lenders to exit the coalition in the past month. In a statement, Citigroup said while it remains committed to achieving net zero emissions, it is exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it is also leaving NZBA, adding that it would continue to work with clients on reducing greenhouse gas emissions. The banks’ departure from NZBA follows Goldman Sachs Group Inc and Wells Fargo & Co. The largest US financial institutions are under increasing pressure
TRENDS: The bitcoin rally sparked by US president-elect Donald Trump’s victory has slowed down, partly due to outflows from exchange-traded funds for the token Gold is heading for one of its biggest annual gains this century, with a 27 percent advance that has been fueled by US monetary easing, sustained geopolitical risks and a wave of purchases by central banks. While bullion has ticked lower since US president-elect Donald Trump’s sweeping victory in last month’s election, its gains this year still outstrip most other commodities. Base metals have had a mixed year, while iron ore has tumbled, and lithium’s woes have deepened. The varied performances highlight the absence of a single, over-riding driver that has steered the complex’s fortunes, while also putting the spotlight
Twenty years after he was a young, struggling actor in Toronto, Thomas Lo (盧瑞麟) is now the one giving young Asian actors their big breaks. He just had to go to Hong Kong to do it. The Chinese Canadian has been the creative director of one of the territory’s biggest TV broadcasting companies for only a few years, but is already making original English-language content to reach viewers around the world. “It was a bit of a full-circle moment for me,” Lo said. “You see more Asians, but you’re still seeing the same Asians on screen, right? We’re looking for more opportunities
RSS