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For a long time, although the mainland flat-panel display industry has emerged well-known flat-panel TV companies such as TCL, Hisense, Changhong, Konka and Haier, it lacks upstream core technology. Major components such as panels and modules are subject to the NUS and Japan, and so on. It is trapped by "there is no upstream upstream." Although Taiwan's panel industry is a leading industry on the island, it mainly relies on exports. The dilemma of “having no upstream upstream†is obvious.
The cross-strait flat-panel industry has complementary advantages and a broad space for cooperation. In order to jointly cope with the impact of the international financial crisis, mainland enterprises purchasing Taiwan panels has become a breakthrough in cross-strait flat-panel cooperation.
In January 2009, cross-strait operators held the "Straits Cross-Strait Flat Display Industry Strategic Cooperation Forum" in Fuzhou. The nine color TV backbone enterprises in mainland China and Taiwan panel manufacturers have stabilized supply and demand relations, jointly participated in the formulation of industrial standards, improved after-sales service and logistics system. The content reached 6 consensus and reached a total of $2.2 billion panel purchase agreement. At the beginning of June, Bai Weimin, secretary-general of the China Electronics Video Industry Association, led a mainland color TV company to Taiwan to exchange an additional 2.2 billion US dollars in purchase intention.
In addition to procurement, the cooperation between the two sides of the flat-panel display industry in 2009 quickly extended to the joint development of technology, the development of standardized structures, and the sharing of technical resources. For example, Changhong and Taiwan AU Optronics announced in June that they will jointly establish Changzhi Optoelectronics Co., Ltd., which is mainly engaged in the production, processing, assembly and maintenance of liquid crystal displays, LCD TVs and related components in Sichuan. Changhong's LCD screen is fully operational.
"Since the two sides of the flat-panel display industry lack a complete industrial chain, but the advantages are complementary, the smooth cooperation in 2009 has achieved the effect of mutual benefit and win-win." Bai Weimin said.
Liao Jinxiang, chairman of Taiwan Chi Mei Group, said that the mainland's "home appliances to the countryside" policy last year drove the rapid development of the mainland flat-panel TV industry, while large-scale procurement to Taiwan also helped Taiwan panel makers to weather the storm. "We feel particularly deep. Chi Mei's sales in the mainland accounted for about 40% of our total output last year." According to statistics, in 2009, the market share of Taiwan's LCD panels in the mainland increased significantly from 35% in 2008 to 50%.
According to the analysis of the Electronic Video Association, the total output of the mainland color TV industry is expected to reach 95.9 million units in 2009, of which the output of flat-panel TVs reached 67.8 million units, accounting for less than 70% from less than 50% in 2008. In 2010, the mainland color TV Industry output will reach 98 million units, of which 80 million flat-panel TVs, accounting for 82% of the total industry.
"The mainland is in the peak period of CRT color TV upgrades. The demand for flat-panel TVs is very strong in the next few years. Relying on the mainland market, cross-strait operators continue to increase cooperation, and continue to enhance the international market share for the cross-strait flat panel display industry. Rate is of great significance." Bai Weimin said.
On the 20th of this month, the "Straits Cross-Strait Flat Display Industry Strategic Cooperation Summit and Signing Ceremony" was held in Beijing. 9 mainland color TV companies and Taiwan flat panel display companies signed the 2010 strategic cooperation plan to deepen joint technology research and development and strengthen patent standards cooperation. At the same time, mainland color TV companies signed a contract with Taiwan's LCD panel manufacturers to purchase $5.3 billion of LCD panels for TVs.
"The results of the summit show that the cooperation between the two sides of the flat-panel display industry has gone deep." Bai Weimin said that the two sides should continue to strengthen cooperation in the future, promote industrial upgrading, and seize the opportunities in the field of international flat panel display technology.
Liu Hongxin, general manager of Hisense Electric Co., Ltd. said that while continuing to increase the procurement range of Taiwanese panels, it will further increase technical exchanges with Taiwanese enterprises and promote the improvement of cooperation level.
Liao Jinxiang said that he is very optimistic about the growth potential of the mainland flat panel display market, and Chi Mei has placed the mainland in the first priority position. With its sales experience and strength, mainland color TV companies are expected to surpass Japanese and Korean manufacturers through cooperation with Taiwan panel makers and launch their own international brands in the global market. 
Cross-strait cooperation to create a complete industrial chain of flat panel display industry
Following the purchase of US$3.4 billion in 2009, mainland color TV companies have signed a contract with Taiwanese flat panel display manufacturers to purchase $5.3 billion of LCD panels for TV. The industry believes that behind the large-scale procurement is the deep cooperation and industrial chain integration of cross-strait flat panel display companies, the cross-strait flat panel display industry is expected to draw a new blueprint in the international market.