AUO and Eternal Chemical to form Joint Venture

DigiTimes: On May 19, Eternal Chemical based in Taiwan announced that it will form a joint venture with AUO to develop components for LCD production. AUO will form this joint venture through its Konly Venture Corporation affiliate with each claiming 45% stake. AUO’s BOD has not approved this joint venture as of yet. Eternal has a division that provides photoresist materials and optical films. Photoresist is a process to manufacture color filters (CF). With CF costs a large portion of the cost of LCDs, many are researching ways to completely eliminate CFs or to reduce the cost.

AUO has made several investments to vertically integrate some key components to LCD manufacture. For CCFLs, Wellypower has been tapped with a 10% stake. AUO has a subsidiary called Raydium Semiconductor that provides driver ICs. Daxon Technology, a member of the BenQ Group provides polarizers. Another BenQ Group member, Darfon Electronics, provides inverters to AUO. AUO also has a 28% stake in Cando, a supplier of CFs.

Update: A good introduction and some company and financial data about Eternal Chemical can be found here at Google Finance.

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