Teco Group Builds LCD TV Factory to Tap Huge China Market

Taipei, Dec. 5, 2008 (CENS)--To tap the RMB920 billion of household electronics sales in China in the next four years, Teco Group, a leading supplier in Taiwan of white goods, has begun building an assembly factory of LCD (liquid crystal display) TVs in Xiamen City, southeastern China, for US$60 million, according to company sources.

Liu Chao-kai, chairman of Teco Group, noted that the new factory is the group's first manufacturing base for LCD TVs, which, under Teco's China subsidiary Asia Innovative Technology Co., Ltd., is scheduled to come online within 3 years and will occupy 160,000 square meters, turning out 1 million units of energy-efficient thin LCD TVs annually. Up to 40% of the output will be exported to Europe and 30% sold in China.

Institutional investor said that Aisa Innovative Technology will become the largest supplier of LCD TVs in terms of production capacity among Taiwanese companies operating in China once the factory is operational. Also, this will be Teco's largest overseas manufacturing base of LCD TVs.

The Chinese government's consumer spending stimulus package that offers subsidizes consumers 13% of each consumer electronics they buy, which will generate sales of 480 million units of consumer electronics worth RMB920 billion in the following four years.

LCD TVs supplied by Asia Innovative Technology, Teco said, are 30% more energy efficient than competing models, and built with broadband networks featuring the highest speed in the world.