06.20.2001
Mainland provides TFT-LCD opportunity

• Development: During a mainland visit, UMC group indicated a decision to invest NT$2bn in AU Optronics (unlisted) for TFT-LCD module assembly in Suzhou, China.

• Analysis: In order to reduce cost and get closer to the market, Taiwan LCD makers (including TFT-LCD and STN-LCD) are considering labor-intensive LCD module assembly production in China.

• Primasia View: As we believe Taiwan makers will stand to benefit from this type of cooperation with mainland parties over the long haul, we will stick with our picks in this sector, namely ADT (2409 ‘Da Ji’) and Unipac (5441 ‘Lian You’).

MarthaChen@Primasia.com +886-[0]2-2547-8878