Taipei, July 23, 2010 (CENS)--AU Optronics, Taiwan`s leading flat panel display (FPD) maker, has filed an application to build two 11th-generation FPD plants at the Erhlin base of the Central Taiwan Science Park, instead of four 10th-generation plants as originally planned. The application, if approved, will pave the way for the Ministry of Economic Affairs (MOEA) to grant permission for the company to set up 7.5-generation FDP plant in Kunshan, Jiangsu Province.

The new FPD project will cost NT$200 billion, half of the NT$400 billion investment plan committed by the company in Taiwan. The other half will be used in building two solar-cell module plants, also in the Erhlin base. The new FPD project will have to be approved by the Central Taiwan Science Park Administration.

Huang Chung-chiu, vice economics minister, pointed out yesterday (July 22) that "The government must make sure that AU won`t scale down its commitment to investing NT$400 billion in Taipei before approving its application to invest in China." The company filed an application with the Ministry of Economic Affairs (MOEA) in March for building 7.5-generation FPD plant in Kunshan, for which the ministry has asked it to supply more supplementary documents.

Under the existing regulation, Taiwanese FDP firms have to keep more advanced technologies and pledge corresponding investments in Taiwan, in order to win the government`s approval for investing in 6th or higher generation FPD plants in China.

(by Philip Liu)