In order to lower their production costs, Chinese mainland TV manufacturers including Hisense, Changhong and Skyworth, have turned their eyes to Taiwan where cheaper and better TV panels are available.

Recently, Hisense, TCL and Skyworth have each sent their staff in succession to Taiwan to purchase LCD panels.

Mainland manufacturers' total purchase volume is expected to reach US$2 billion this year and the three biggest beneficiaries in Taiwan will be Chi Mei Corporation, AUO and Chunghwa Picture Tubes.

Meanwhile, some Taiwanese IC design giants like MediaTek and Sunplus are doing their best to occupy the mainland TV chip market.

Local media estimates show that the mainland LCD TV market will increase by 100% each year in the next three years and the total LCD TV sales in the area will exceed 10 million by 2008.