Taiwan Today

Taiwan’s panel industry called on the government July 8 to negotiate with Beijing to reduce the current tariff on locally made panels. Industry representatives hope the government can persuade Beijing to reduce the current 3 percent tariff on Taiwan-made panels to zero percent, so they can better compete with their South Korean and Japanese rivals. The Ministry of Economic Affairs has included panel products in the economic cooperation framework agreement to be negotiated with the mainland. Panel products are already one of the zero-tariff items under the Information Technology Agreement of the World Trade Organization. But a MOEA official said whether the industry’s wish can be fulfilled will hinge on the results of negotiations with the mainland. An official meeting with panel manufacturers convened July 8, with Vice Minister of the Ministry of Economic Affairs Hwang Jung-chiou, MOEA’s Industrial Development Bureau Director-General Woody T. J. Duh, and the ministry’s Department of Industrial Technology Director General Wu Ming-ji in attendance. In addition to the zero-tariff issue, Ho Jau-yang, director of Chi Mei Optoelectronics, urged the government to allow full access to the mainland for Taiwan panel products. The MOEA said it is examining the situation thoroughly. Chen Lai-juh, president of AU Optronics and director-general of Taiwan TFT LCD Association, said the industry urgently needs to set up panel manufacturing plants to expand their market share. So far, an initial framework has been worked out with the government, but details still await confirmation, such as how many 8.5 generation and fifth-generation LCD factories are needed. It is understood that the mainland has a pressing need for sixth-generation Taiwanese LCD factories or more advanced ones. In the hope of relieving heavy reliance on imported panel products from Japan, South Korea, and Taiwan, Beijing has made offers of free land and capital to attract manufacturers from Taiwan. The mainland market is very tempting, with 100 million color TVs sold annually and a potential market of 500 million TVs, the MOEA said. The MOEA is also concerned about whether panel design and RD skills can be retained in Taiwan. (TYH-THN)