Gov't Speeding Up Approval of AUO's Investment Plan in China

Taipei, Aug. 6, 2010 (CENS)--Although the domestic investment plan of AU Optronics (AUO), Taiwan's leading FPD (flat panel display) maker, is facing an uncertain future due to the court order halting the development works for the expansion of Central Taiwan Science Park, the Ministry of Economic Affairs (MOEA) plans to accelerate approving the application filed by AUO to invest in China.

The park administration issued a letter of approval for AUO's plan to build two 11th-generation FPD plants and two solar-cell module plants at total cost of NT$400 billion in the Erlin base of the park, whose development works will be suspended under the court ruling. Based on the approval letter, the MOEA will issue a green light for AUO to build a 7.5-generation plant, at cost of US$3 billion, in Kunshan of Jiangsu Province. Under the existing practice, major hi-tech firms must make corresponding investments in projects featuring advanced technology in Taiwan before gaining the government's approval to invest in China.

The park administration sped up the approval of AUO's investment plan in the park, in order to contain the damage on AUO, stressing that AUO is an innocent victim of the court ruling.

Meanwhile, Zhou Jing-yang, deputy minister of the National Science Park, which oversees the operation of local science park, reported that the NSC will appeal the court verdict next Monday (Aug. 9) and ask the park administration to put forth health hazard assessment report for the park's expansion project in the shortest time possible, in accordance with the requirement of the environmental screening committee of the Environmental Protection Administration when approving the environment impact assessment for the expansion previously.

In accordance with the requirement, AUO already put forth the health hazard assessment report several times, which, however, all failed to gain approval by the environmental screening committee. The requirement for such report is unprecedented in Taiwan.