AU Optronics and Changxin chemical research intends to join LCD yuan accessories

According to Changxin chemical Limited by Share Ltd (Eternal Chemical) submitted a document to the Taiwan stock exchange, the company's board of directors has announced in May 19th, the company will develop and AUO company in the development of liquid crystal display element accessories cooperation.

AU Optronics Corporation and Changxin chemical Limited by Share Ltd under the Kang Li Vc firm jointly set up a joint venture. Two seats of AU Optronics Corporation and Changxin chemical Limited by Share Ltd will be in the new joint venture company each accounted for 45% of the shares and the board of directors. The name of the newly formed joint venture has not been finalized, according to industry insiders said the two sides will invest 400 million yuan in the new joint venture (NT $21 million 500 thousand).

The insider added, AU Optronics Corporation Senior Vice President CY Lin will serve as the new chairman of the company.

However, AUO company claims between it and Changxin chemical Limited by Share Ltd cooperation has not been approved by the board of directors of the company.

Changxin chemical Limited by Share Ltd was founded in 1964, currently has a professional production of optical materials and optical film branch. Photoresist is the key component in the production of color filter, which accounts for about 20% of the total production cost.

AU Optronics Corporation has invested in several key components of material manufacturers in product color filter.