Taiwan-based LCD (Liquid Crystal Display) maker CPT (Chunghwa Picture Tubes) and LCM (LCD module) maker Giantplus announced a strategic alliance on November 5. CPT will sell its 3G LCD plant in Taoyuan of northern Taiwan to Giantplus. In the meantime, Giantplus will obtain panel supply from CPT's 4G and 4.5 generation plants.

CPT's 3G plant uses 550X670mm glass substrates and has a monthly production capacity of 40,000 units. CPT sold the plant to Giantplus for NT$6.5 billion (US$200.1 million; US$1=NT$32.5), and the company will obtain NT$1.97 billion (US$60.6 million) in cash and a one-third stake of Giantplus. CPT will operate with one 4G, two 4.5G, and one 6G plants after the completion of transaction in the first quarter of 2008. The cooperation is expected to help both companies expand their shares in the small- and medium-size LCD panel market.