Chi Mei will be extending into the backlight module sector with a cross-investment in Chi Yao Optoelectronics, which will be producing CCFL (Cold Cathode Fluorescent Lamp) for LCD TV panel. Investment in the venture is expected to total NT$400 million (US$11.8 million; US$1 = NT$33.9) to NT$500 million (US$14.8 million); Chi Mei will hold a 20% stake.

 

CCFL supply for LCD TV currently lies in the hands of Japanese makers, and AUO is the only Taiwanese maker that holds direct ties with suppliers. AUO currently runs a joint venture in Suzhou, which produces CCFL for LCD monitor and notebook PC panels.

 

Early entry into the CCFL segment is said to be of considerable importance for LCD TV development. Backlight modules for LCD TV panels 30" and larger require different designs than traditionally used with LCD monitor and notebook PC panels. Chi Mei has also indicated that backlight modules currently comprise nearly 40% of material costs.