Compal cosies with LG for million dollar mainland project

Gigantic Taiwanese ODM Compal wants to cosy up to LG Display to focus on component production, according to a statement it posted to the Taiwan Stock Exchange.

Compal is planning to bung around $7.35 million into the project. As is often the case around Asia, Taiwanese Compal and Korean LG will be looking to the cheap labour and people power of China for production – the venture is expected to plant its roots in Kunshan, Jiangsu Province.

The capital size, reports Focus Taiwan, is set at $15 million – the publication reckons Compal will be taking the 49 percen stake while LG will have the small majority with 51 percent. Research and development will also be on the cards.

Yesterday Reuters reported that Taiwan stocks were crashing 0.64 percent, following Wall Street, but Compal was the only survivor and in fact on the up. We wonder if mutterings around the Taiwan Stock Exchange about the venture with LG had anything to do with it – probably.

The venture may be win win for Compal, piggybacking off LG to get it orders from mainland China TV brands already working with LG, reckons DigiTimes’ sauces

It’s thought that the joint operation will also focus on research and development in the notebook production assembly and marketing spaces. Apparently both Compal and LG are working out the kinks in the finer details. Along with Wistron and Quanta, Compal is one of Taiwan’s biggest ODMs and likes to keep a low profile while maintaining a high back-end. It’s not the sort to issue statements willy-nilly so we’re guessing it’s serious on this one.