The Hon Hai Group has recently acquired the Chi Mei Group's LCD display panel business, Chi Mei Optoelectronics Corp., boosting its panel-manufacturing capacity to 18% of the world's total, and further turning up the heat on Flextronics in global market of electronics manufacturing service.

Report has it that AU Optronics Corp. (AUO) is attempting to acquire Tatung's LCD panel business, Chunghwa Picture Tube, to square off the Hon Hai-Chi Mei camp. Industry watchers assumed Widmann visited Lin Gou to solicit partnership from Tatung although the two companies said the two executives met over Multek's procurements of Chunghwa's panels for next year's business.

Flextronics is currently the world's No.2 electronics manufacturing service provider of a variety of products including desktop computers, severs, game consoles, notebook computers and mobile phones. It has depended on Chunghwa as one of its major LCD-panel suppliers.

Flextronics plans to ship 1-1.5 million notebooks in 2009, mostly to Hewlett-Packard Co. (HP). The company has boosted notebook manufacturing capacity at its Suzhou factory in mainland China in line with the aggressive shipment goal. To ensure a smooth shipment, the company will need to secure uninterrupted LCD supply sources, prompting Widmann to enhance his company's partnership with Chunghwa after Chi Mei was acquired by archrival.