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Panel maker calls for government support of the industry

2012/06/29 21:59:13

Taipei, June 29 (CNA) Tuan Hsing-chien, chairman and CEO of Taiwan's largest panel maker Chimei Innolux Corp., called for the government's support of the industry after the company's annual shareholders' meeting in Miaoli County Friday.

Citing the government's involvement in the flat panel industry in South Korea, China, and Japan, Tuan said the Taiwanese government should play a similar role in the domestic flat panel sector.

Tuan said Taiwanese companies still have the edge in flat panel technologies, with South Korea's Samsung only having an advantage in active-matrix organic light-emitting diode (AMOLED) screen technology.

By differentiating their products, Tuan said, Taiwanese panel makers can still maintain their competitiveness in the market, despite the unclear economic outlook.

Meanwhile, Tuan apologized to shareholders for the company's net loss of NT$64.44 billion (US$2.16 billion) in 2011, blaming the industry's excess capacity globally amid a poor business climate.

With the Hon Hai Group taking over the one seat on the Chimei Innolux board during the shareholders' meeting previously held by Chi Mei Corp., Tuan said Hon Hai will offer full support to Chimei Innolux, which has huge capital needs.

Chimei Innolux was created by the merger of Innolux Display Corp., Chi Mei Optoelectronics, and handheld device panel supplier TPO Display in March 2010.

Responding to the recent tie-up between Hon Hai and Japan's biggest panel maker Sharp Corp., Tuan said it will have a positive effect on Chimei Innolux, with the two panel makers expected to establish a partnership and exchange technologies.

During the meeting, shareholders also approved the plan to raise capital of up to NT$15 billion through issuance of new shares, private placement, or other channels, according to a statement issued by the company later Friday.

(By Pan Chi-i and Kay Liu)