Hitachi Mulls Setting Up Air-Conditioner Compressor R&D Center in Taiwan

Taipei, July 23, 2010 (CENS)--Hitachi Group of Japan is assessing the feasibility of setting up a R&D center in Taiwan to develop technologies for air-conditioner compressor production, according to Chinese-language economic newspaper Economic Daily News (EDN).

If things go smoothly, industry sources said, Hitachi's move is expected to benefit home-appliance companies in Taiwan. The sources added that a U.S.-based supplier of key material for making thin film transistor-liquid crystal display (TFT-LCD) panels is also mulling a R&D center on the island. The potential American investor is discussing possible partnership with local TFT-LCD panel manufacturers AU Optronics Corp. (AUO) and Chimei Innolux Corp. (a merger between former Chi Mei Optoelectronics Corp., Innolux Display Corp., and TPO Displays Corp. on March 18, 2010).

Some industry insiders familiar with Hitachi's project pointed out that the Ministry of Economic Affairs (MOEA) contacted Hitachi Group in February and March this year seeking to persuade the Japanese conglomerate to set up a R&D center in Taiwan. As a result, Hitachi decided initially to operate a cloud-computing R&D center in Taiwan to cash in on the increasing repair and maintenance demand from the island.

MOEA, however, did not think Hitachi's scheduled cloud-computing R&D center would greatly help the development of the local industry, and therefore suggested the Japanese group modify its project. Some industry experts said that very few Taiwanese companies are capable of making high- and stable-quality air-conditioner compressors, so Hitachi's decision would help to stimulate the development of the local compressor sector.