Taiwan LCD Company Stock Prices Increase: China Pledges $2 Billion in LCD Purchase

On December 22, 2008, Taiwan’s LCD company stocks increased after China announced that it would purchase $2 billion worth of Taiwanese LCDs in 2009 to support the global economy. The announcement was made during the 4th cross-strait economic and cultural forum that was held in China with Taiwan. Shares of AU Optronics (AUO) increased 4.54% while Chi Mei Optoelectronics (CMO) saw its shares go up 6.9%. China accounts for roughly 15% of AUO’s LCD TV panel shipments. CMO also expects its LCD TV panel shipments to China to increase 10-15% Q/Q in Q4’08. One of the reason for such optimism is due to China selecting CMO as a supplier to a Chinese government program to increase penetration of electronic products in rural areas of China. Chunhwa Picture Tubes (CPT) also saw its share prices increase by its daily limit; shares for HannStar Display (HSD) also went up 6.01%. Taiwanese LCD suppliers were previously expected to supply China with 5 million LCD panels totalling $1 billion in 2009. Now that number has doubled thanks to the Chinese government.

Source: Reuters, DigiTimes, CENS

[tags]AU Optronics, AUO, Chi Mei Optoelectronics, CMO, Chunghwa Picture Tubes, CPT, HannStar Display, HSD, Display Manufacturer, LCD Manufacturer[/tags]

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