On the heels of Chi Mei Optoelectronics (CMO) announcing it was investing US$14.06 million in China via Ampower Holding for LCD components, Foxconn (Hon Hai Precision Industry) on March 19 also announced it will invest US$14.03 million in Ampower Holding via Foxconn (Far East). Foxconn will take a 45% in the holding company, said the filing.

Foxconn is looking to work closely with LCD panel makers, so the company decided to collaborate with CMO to develop the inverter business, industry sources noted. With their investments in Ampower Holding, the two companies are not ruling out the possibility of setting up a new company to produce LCD inverters in the future.

Amid strong LCD TV demand in 2007, demand for inverters used in LCD TV panels will reach 600-700 million units, said the sources. This could be the main reason driving CMO to invest in the LCD component business.

LCD Inverters drive cold-cathode fluorescent lamps (CCFLs) which are used for LCD backlight units (BLUs). One or two inverters can drive one CCFL. Inverters account for 6% of the cost of a 32-inch LCD TV panel made at a sixth-generation (6G) plant – about the same proportion as the driver ICs.

Source:佚名