LCD panel maker Chimei Innolux (CMI) has said it is evaluating the possibility of setting up a flat panel plant in Brazil and will map out the investment project considering its current financial pressure.

CMI is responding to a request from parent company Foxconn Electronics (Hon Hai Precision Industry) for a feasibility study, according to industry sources, who added that Foxconn reportedly plans to establish a complete production base in Brazil with a total capital of US$12 billion.

About US$8 billion out of Foxconn's total projected investments in Brazil will be used to build up facilities for the production of LCD TFT panels and touch-screen panels, the sources revealed.

Some sources indicated that CMI is mulling to transfer a 5G or 7.5G plant to Brazil. But CMI stated that it is still evaluating the possibility of building a new plant or transferring one of its existing plants to Brazil.