AU to build 4 new LCD plants in Taiwan over 10 yrs

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TAIPEI, Aug 27 (Reuters) - AU Optronics Corp , the world's No.3 LCD maker, will invest about T$400 billion ($12.7 billion) to build four new LCD plants over the next 10 years, as part of the firm's commitment to invest in Taiwan.

To strengthen its long-term competitiveness in the display market, dominated by Samsung Electronics and LG Display , AU Chairman K.Y. Lee announced the plan after meeting with Taiwan premier Liu Chao-shiuan on Wednesday.

The new plants will be located in central Taiwan and AU (AUO.N: Quote, Profile, Research, Stock Buzz) is also planning to attract upstream component makers to build an LCD complex together, the statement said.

Under AU's plan, the first liquid crystal display (LCD) plant will use more advanced generation 10 or above manufacturing technology, with operations starting in 2011-2012, but the firm gave no capacity estimates yet.

The news came after the Taipei stock market closed on Wednesday. AU shares rose 2.3 percent, outpacing the main TAIEX's 1.7 percent gain.

The company announced the long-term investment having warned of an impending slowdown in late July.

Blaming high fuel costs and a global economic downturn that hurt spending on new PCs and flat-screen TVs, AU predicted lower prices and smaller shipment growth for the third quarter.

AU has invested T$600 billion in the industrial science parks in central Taiwan, a local newspaper reported last week.

Earlier this month, Hon Hai Precision , Taiwan's biggest electronics parts company, also unveiled several major plans to expand its presence in the island, with total investments exceeding T$100 billion. (US$1=T$31.5) (Reporting by Baker Li, Editing by Ken Wills)