Chimei Innolux Corporation, a Taiwanese TFT-LCD panel manufacturer, will become Apple’s third supplier of sensors for the iPad 2 touchscreen, Bloomberg reports, citing sources familiar with the matter.
The Taiwanese company is an affiliate of Foxconn, the multinational company responsible for iPad/iPhone manufacture.
Based on what the anonymous sources disclosed, Chimei Innolux will start supplying components next month. This doesn’t endanger the other two Taiwanese companies that remain key suppliers, TPK Holding Corp and Wintek Corp.
The iPad is at the forefront of a rapidly increasing tablet market, therefore Foxconn, with a net worth of $5.5 billion, and its affiliates have everything to gain in this emerging electronics sector.
Chimei Innolux seems to be quite a controversial company, most notably having been fined $300 million by the European Union in December 2010, as they allegedly set up price fixing schemes.
As reported in January, this year, Taiwan’s largest LCD maker is planning an initial public offering (IPO) for the second half of the year, as it seeks to expand.
If they manage to cement the deal with Apple, it could solve the financial issues that the company is facing, having registered a 24% loss of shares, as the price for displays has fallen.