The company to be created from the merger of Taiwanese LCD makers Chi Mei (3009.TW) and Innolux 34812.TW will apply for permission to set up a plant in China as early as the second quarter, a source familiar with the situation said on Wednesday.

Chi Mei declined to comment. The company will complete the merger on Thursday.

Earlier this year Taiwan eased restrictions on technology companies' investments in China, following similar moves by Korea and Japan, whose makers are Taiwanese firms' biggest competitors.

Taiwanese firms have urged the government to allow them to invest more in China or use more advanced technologies there to cut costs and compete better with rivals

 source:reuters