Seven of China’s major TV manufacturers will travel to Taiwan on June 1 to procure TFT LCD panels. The seven companies include Konka, Hisense, Skyworth, SVA-NEC, XOCECO and Xiong Mao. This will the first time that this group of seven companies will conduct a joint procurement activity in Taiwan. The two LCD manufacturers that will benefit are AU Optronics (NYSE:AUO) and Chi Mei Optoelectronics (TPE:3009), the two largest LCD suppliers in Taiwan.
AU Optronics and Chi Mei Optoelectronics will certainly benefit from a likely long-term supply agreement to these Chinese TV manufacturers. The LTAs will also help streamline the ups and downs in these two LCD suppliers’ revenues and profits.
Source: The China Post