AU Optronics is the first major Taiwanese LCD screen manufacturer that is going to build an advanced LCD factory in China. It is planned to build a 7.5-generation LCD panel factory for US$3 billion in Kunshan, China. The company will be able to spend $1.2 billion of its own money and the rest part it is going to take from local financing.

Last month the Taiwanese government eased rules concerning technology investments, such decision was made in order to compete with South Korea. One should say that Taiwanese LCD makers hold the second position in the global LCD panel business. Last year Seoul finally allowed its two big LCD makers to build advanced LCD factories in China.

Now companies are able to make investments or even transfer advanced technologies to China. The island takes a lot of efforts to stick to U.S. regulations related to technology transfer to China as well as other nations lagged as a danger under the Wassenaar Arrangement.

Taiwanese politicians and companies understand that China has over one thousand missiles targeted at the island, moreover, a couple of times it said that it would invade Taiwan in case the island decides to become independent.

According to AU, it is still going to continue to invest in new LCD panel production in Taiwan.