Chunghwa Picture Tubes (CPT) and Xiamen Overseas Chinese Electronic Company (Xoceco) have signed an agreement worth about CNY3 billion to jointly operate electronics factories.

Under the agreement, CPT will set up a 600,000-square-meter TFT-LCD factory, which is expect to bring it CNY20 billion output value each year.

Xoceco will also establish a flat-screen television factory which is estimated to produce 8-10 million sets per year.

The two agreements will be implemented synchronously and completed within two years. According to Lin Zhenhong, president of CPT, CPT and Xoceco will jointly operate Xoceco's brand.

Lin also said that the new factory was not limited to supplying only Xoceco, and Xoceco may also choose to use products of other LCD suppliers.