(Yicai Global) Dec. 3 -- A subsidiary of TLC Technology Group will invest CNY7.5 billion (USD1.2 billion) to build a sixth-generation liquid crystal display panel production line in central Hubei province to extend its footprint in the growing automobile screen market and other small display sectors, the Chinese TV giant said yesterday.

TCL China Star Optoelectronics Technology’s new production line in Wuhan will manufacture low temperature polysilicon LCD screens for the small and medium-sized displays used in autos, tablets and virtual reality devices, the parent firm said. It will have an output of 45,000 pieces a month when completed.

Global sales of automotive displays jumped 39.1 percent in the first half from the same period last year to 91.4 million pieces, according to UK market analyst firm Omdia. Rival Tianma Microelectronics is currently the world’s largest low temperature polysilicon LCD manufacturer and one of the biggest automotive display suppliers. But Shenzhen-based TCL China Star aims to become world number one, Chief Operating Officer Zhao Jun told Yicai Global earlier.

The investment is in fact just half of the funding needed for a major optoelectronics project that TCL, TCL China Star and unit Wuhan China Star Optoelectronics are building in the Wuhan East Lake Hi-tech Development Zone costing CNY15 billion. The management committee of the hi-tech zone will inject CNY3.5 billion (USD549.5 million) and the rest of the monies will be provided by the operator of the project, Wuhan China Star.

TCL’s share price [SHE:000100] was trading up 0.49 percent at CNY6.12 (USD1) as of 1 p.m. China time today.

Editor: Kim Taylor