TAIPEI - Taiwan-based Chi Mei Optoelectronics announced that it is planning to invest $131 million in mainland China, with $8 million to be spent on increasing capacity in its Ningbo plant, as well as improvements to plants in the Nanhai district of Foshan City that assemble small and medium sized LCMs and touch panels.

The production capacity of the plants in Ningbo and Nanhai are expected to reach 1 and 5 million modules per year by the end of 2008, respectively, an expected capacity increase of 57%.

Chi Mei's latest move is part of its effort to meet the likely rising demand for LCD modules, driven by an expected 45% increase in TFT LCD panel production this year.

Chi Mei is one of several Taiwanese company increasing investment in mainland China. Unitech PCB has also announced plans to invest an additional $20 million into its subsidiary, Shanghai Unitech Electronics Company.