Manufacturing News

Taiwan's Tatung to contract China's Xoceco for LCD TV assembly

Taiwan's Tatung Group has decided to contract mainland Chinese partner Xiamen Overseas Chinese Electronic Co., Ltd. (Xoceco) to supply LCD TVs with thin film transistor-liquid crystal display (TFT-LCD) panels supplied by Chunghwa Picture Tubes, Ltd. (CPT), the third-largest panel maker in Taiwan and a major affiliate of Tatung.

Tatung chairman W.S. Lin recently said Tatung and Xoceco will form a new strategic alliance to upgrade mutual competitiveness. He claimed that Tatung exported about one million LCD TVs in 2008, aiming this year to ship 100,000 units in Taiwan to be among the top-three.

Xoceco, a top-10 LCD TV brand in China and reinvested affiliate of CPT, has replaced Proview, a top-five LCD monitor maker worldwide, to become Tatung's LCD TV contract manufacturer.

Lin stressed that Xoceco's operation has been improving and began turning profitable, hoping the subsidiary can be relisted in the public capital market.

Xoceco plans to procure three million, or more than US$700 million, TV panels from Taiwan this year, or 85% of its overall annual purchase value. The Chinese LCD TV brand will buy sub-37-inch panels from CPT and larger ones from other Taiwanese suppliers as AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. (CMO).

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