Taiwanese LCD panel maker AUO announced on June 22 that it aims to boost its market presence in western China and that the company plans to incorporate a JV with Sichuan Changhong in China's Sichuan province, Reuters reported on June 21. The JV - to be named BVCH Optronics (Sichuan) - will manufacture LCD modules for use in LCD TVs, according to Nikkei Electronics Asia reported on June 22. The JV is valued at 100 million RMB (US$14.7 million; US$1= 6.8 RMB), with AUO holding a 51% stake in the JV and the remaining 49% going to Sichuan Changhong, according to the same source.

The investment plan, however, is still pending approval by Taiwan's government as the current laws only allow Taiwanese LCD panel makers to conduct final assembly operations in China, according again to Reuters. Meanwhile, Sichun Changchong recently stated that the company would purchase between 2.5 million and three million LCD panels worth one billion RMB (US$ 146.3 million) from Taiwanese LCD panel makers, including AUO.