Funai Signs Agreement with CMO for LCD Panel Supply
February 17, 2006
Japanese Funai announced on Wednesday February 15 that it has signed an MoU with Taiwanese CMO, whereby Funai will lend US$400 million to CMO over a period of five years with which CMO can increase its LCD panel production capacity, which in turn will give Funai a stable supply of LCD panels. Funai plans to increase its LCD TV sales from 600,000 units in 2005 to 1.8 million units in 2006. Currently, 90% of its LCD TVs use panels made by CMO, and the newly signed agreement will thus go a long way in ensuring that Funai will have enough panels to achieve its sales target. Funai currently has a 1.2% stake in CMO.