Chinese major LCD-TV maker TCL Corp., will partner with Harvatek Corp. a Taiwanese LED maker 15% held by silicon foundry United Microelectronics Corp. (UMC), to build an LED package venture, in the mainland’s southern coastal province of Guangdong.

Under their cooperation, it’s estimated to cost around RMB200 million in investment spending, will be equally shared by the two companies in cash. The venture is scheduled to operate production for the second half of this year, with initial output set at two billion packages a year.

According to industry executives, TCL chose Harvatek mainly based on Harvatek’s automated production capability. The mainland’s LCD TV makers have begun shifting to homegrown suppliers from overseas suppliers for the backlights in line with their local-content strategy. However, substandard quality at compatriotic suppliers has eroded the TV suppliers’ confidence in them, prompting them to seek joint venture partnership with Taiwanese manufacturers.

Harvatek Chairman B.L. Wang claimed that his company is the industry’s only manufacturers turning out packages on self-made automatic die-bonding lines, enabling it to scale up production capacity at fast pace. In addition,the company will transplant its success in Taiwan to the joint venture.

Harvatek’s involvement in the joint venture with TCL also suggests UMC’s increased presence in the mainland’s green-energy market, where it already sets up solar-cell operation.

Additionally, TCL Chairman Li Tungshen pointed out that the company’s 8.5-generation LCD production facility would fulfill the goal of producing the set maximum 100,000 panels per month by the end of this year, up from current 40,000 panels.