Taiwan-based BenQ, TPV Technology (AOC brand), and Proview's affiliate MAG Technology have been selected as suppliers for the China government's second stimulus program for rural areas, according to market sources. International vendors Sharp, LG Electronics and Sanyo have also been selected.

The China government has increased the amount of subsidies to 3,500 yuan (US$512.37) from 2,000 yuan for the last program, allowing people to purchase larger-size TV models, the sources said, adding some 37-inch and 42-inch LCD TVs are included in the program.

Hisense, Changhong, Konka, Tsinghua Tongfang, and AOC have launched 42-inch LCD TVs with prices under 3,500 yuan, the sources added.

Under the program, Sharp and Sanyo will be offering LCD TV sizes up to 32-inch at 3,499 yuan, while four LG models (the largest of which is 37-inch) will be available, the sources said.