Citing increased pressure from both advanced and emerging nations, the Taiwanese government has proposed the implementation of incentives to encourage mergers among display panel makers. Low-interest loans and lower tax rates were among some of the incentives proposed to bring panel maker scale up to a level that can facilitate more effective competition with large Japanese and Korean players.

 

The advisory group initiating the proposal pointed to the heavy scale of investment required for next generation TFT LCD (Thin-Film Transistor Liquid Crystal Display), the high risk inherent in the industry, as well as disaggregated resources -- all of which impact competitiveness. The government hopes that mergers resulting in two to three major players will facilitate the efficient use of resources and more effective capital solicitation.