Chi Mei Optoelectronics to Build Two Chinese Plants

CMO will invest US$60 million to build a LCD module plant located in Foshan, Guangdong Province and another US$30 million in Ningbo, Zhejiang Province. The Taiwanese government must approve the investments but investments have already been made by CMO: US$5 million in the Foshan unit and US$90 million in the Ningbo unit.

Because the modularization process is very labor intensive, the move to cheaper labor regions is a no-brainer. However as Chinese labor becomes more expensive in the long run, LCD producers will have to move away from shifting factories to cheaper and cheaper labor regions and instead figure out a simpler way to make the LCDs that require less labor.

Source: Taipei Times

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