A technology committee led by Hwang Jung-chiou, vice minister of economic affairs, is scheduled to meet next week to discuss the AUO application, the sources said.

The MOEA has asked the 10 members of the technology committee — most of them from academia — to show up next week for the scheduled meeting, the sources said.

The review of the application comes at a sensitive time for the company and its investment plans.

AUO had planned to invest an estimated NT$400 billion (US$12.61 billion) in two 11th-generation flat panel plants and solar energy-related facilities in Erlin, Changhua County, the site of the fourth-phase expansion of the Central Taiwan Science Park.

The company has also started work on one of two planned 8.5-generation facilities in Houli, Taichung County, where the science park’s third-phase expansion is taking place.

But AUO’s local investment plans were left in limbo this past week after the Taiwan High Administrative Court suspended the science park’s two expansion projects because park authorities had failed to present a reliable environmental impact assessment of the Houli and Erlin projects.

Despite the legal setback, however, the Science Park on Thursday approved AUO’s change plan to build the two 11th-generation plants in Erlin rather than four 10th-generation plants as originally planned, confirming the company’s commitment to use Taiwan as a hub for its long-term investment.

Such a commitment is a prerequisite for investing in China, and cleared the way for the MOEA’s upcoming review of AUO’s plans to pour US$3 billion into a 7.5-generation plant in Kunshan in China’s Jiangsu province.

Hwang said earlier in the week that the review of AUO’s China investment application would not be affected by the suspension of the science park’s expansion plans as the environmental impact assessment cited by the court was unrelated to the investor.

The sources said the ministry has asked AUO for more information on the adjustments in its Erlin investment plan and the upcoming committee meeting is expected to review information provided by the flat panel maker.

In February, the government relaxed restrictions to allow local flat panel makers to build up to three 6th generation or more advanced plants in China, but applicants were required to preserve their technology lead over China and promise further investment in Taiwan.

AUO filed the Kunshan investment application with the MOEA in March, while also submitting its NT$400-billion Erlin investment proposal to show its determination to pursue long-term development in Taiwan.

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