Taiwan's two biggest LCD makers, AU and Chi Mei, are seeking tie-ups on panel module production or technology with mailand appliance makers amid rising demand from the mainland, a local newspaper said on Monday.

 

AU Optronics Corp, the world's No 3 LCD maker, is in talks with TCL about possible cooperation, while a senior executive from Konka Group has met with Chi Mei executives last week on a potential tie-up on module technology, the Commercial Times said, without citing sources.

 

The move could pave the way for Taiwanese LCD makers to strengthen their relations with branded companies in the mainland to ensure steady supply of LCDs, the Chinese-language paper said, without giving investment figures.

 

Some of Taiwan's technology companies, including panel makers, have been enjoying a spate of rush orders from the mainland, where the government is pushing a program to introduce more electronics goods to smaller cities.

 

Chi Mei has forecast its LCD panel shipments would rise 20 percent this year with help from mainland policy to boost rural consumer spending on electronics.

 

Officials from AU and Chi Mei were not immediately available for comment.

 

Taiwanese LCD makers are not allowed to set up panel factories in the mainland, but AU and Chi Mei now have factories on the mainland to assemble LCD modules and other key components.