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.