CMO will participate in the upcoming rights issue of Chi Mei EL Corporation (CMEL). CMEL plans to issue a total of 60 million shares. ZH Chen, company manager at CMEL, said the raised funds will be utilized to fund operations and add new equipment purchases.

Chen updated that CMEL currently only houses one 3.5-generation (3.5G) AMOLED (active matrix organic light-emitting diode) production line with a monthly capacity of 7,000 glass substrates. Maximum output of AMOLED panels is 300,000 units, he added.

Given that CMEL currently has its 2.4-inch panels under validation with leading mobile phone makers, present capacity may run short of demand very soon. Thus, the fund raising for further expansion is necessary, Chen said.

The second production line at CMEL will also follow the 3.5G standard with a monthly capacity of 7,000 units. Production is slated to be available during the second half of 2008, Chen detailed.

Besides adding investment in OLED panel production, CMO also announced the purchase of a total of 52.2 million shares at another LED subsidiary, Chi Li Lighting, to fund equipment procurement.
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