Taipei, Nov. 10, 2008 (CENS)--AU Optronics Corp. (AUO), the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, has kicked off cooperation with InfoVision Optronics (Kunshan) Co., Ltd. (IVO) of mainland China to produce a mid-stage product or cells, according to industry sources in Taiwan.

AUO has begun commissioning IVO to cut, break, and inject crystal, the sources said, while their cooperation is expected to rapidly expand after the Taiwanese and Chinese governments further liberalize economic interactions.

The successful experience of Taiwan`s TFT-LCD industry has attracted Chinese authorities to accelerate deployments, but newcomers often find little startup room because the majority of the market has been dominated by predecessors in Japan and South Korea. Despite being backed with ample capital, the development of Chinese companies` TFT-LCD business has not been smooth, especially in sixth-generation (6G) and beyond investments.

China`s eagerness to develop homegrown TFT-LCD industry continues unabated, with Chinese Premier Wen Jiabao having personally visited IVO`s 5G panel plant in July, showing support from the central government.

Industry insiders pointed out that AUO chairman K.Y. Lee talked with IVO in May and tried to sell color filters produced by an AUO affiliate, as well as commissioning IVO to produce LCD modules.

The sources added that AUO`s deployments in China likely extend beyond the said partnership with IVO.

(by Quincy Liang)