Taiwan monitor, flat-panel makers announce merger

TAIPEI, Taiwan - A leading Taiwanese flat-panel monitor maker announced Saturday its merger with Taiwan's second largest flat screen producer in an acquisition that could bolster the island's position in the global market.

Innolux Display Corp. said it will acquire flat-screen maker Chi Mei Optoelectronics Corp. through a share swap. Chi Mei will swap 2.05 shares of its own for one Innolux share, the firms said in a joint statement.

Innolux is an affiliate of Taiwan-based Hon Hai Group, the world's largest contract electronics producer with an immense operation in China.

The acquisition will allow Hon Hai to branch out into flat screen production, a field dominated by South Korean and Taiwanese companies that are increasingly vying for a bigger share of the huge Chinese market.

"The merger will give Chi Mei and Hon Hai bigger room for growth, and help them gain leader position in the market," the statement said.

Innolux will gain access to Chi Mei's clients and production capacity, said Innolux Chairman H.C. Tuan, who will be the chief executive and president of the new entity, Chimei Innolux Corp.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.