TAIPEI Aug 12 A proposed tie-up between
Taiwan's Amtran (2489.TW) and South Korea's LG Display
(034220.KS) would see the pair set up a factory in the Chinese
city of Suzhou making LCD TVs, an Amtran spokesman said on
LCD maker LG Display said in March it was seeking alliances
with other firms, such as Amtran, but did not provide any
further details at the time.
"We are negotiating and we have to go through details before
we can jointly announce it," said Scottie Chiu, the spokesman of
Amtran, a maker of the Vizio brand LCD TVs.
Chiu declined to give dollar figures or a timeframe for the
Taiwan's Economic Daily news reported on Tuesday that the
new venture between Amtran and LG Display would make backlights,
panel modules and assemble televisions, and such vertical
integration would help reduce manufacturing costs.
Both companies are likely to conclude the discussions to set
up the venture by the end of the third quarter of this year, the
The news came at a time when major LCD makers Samsung
Electronics (005930.KS), LG Display and AU Optronics (2409.TW)
(AUO.N) face a slowing global economy that is hurting consumer
spending on new computers and flat-screen TVs.
However, the Economic Daily said Amtran's TV shipments to
the United States remained stable in the second quarter.
Amtran was virtually unknown to consumers before it joined
with its U.S. partner, Vizio Inc, in 2005 to penetrate the North
Amtran shares had risen 1.8 percent by midday on Tuesday,
defying a 0.5 percent fall on Taiwan's main TAIEX index .TWII.
LG Display shares jumped 2.5 percent, outpacing a 0.2
percent gain on the Korea Composite Stock Price Index .KS11.
(Reporting by Baker Li, Editing by Dominic Whiting)