Taiwan-based LCD panel maker Chi Mei Optoelectronics (CMO) has denied selling 8.5G fab equipment to a China-based LCD panel maker, according to company sources.

According to China media reports, a 8.5G LCD fab will be built by a newly established LCD pane maker in Foshan, southern China, near CMO's LCD module (LCM) plant in Nanhai. With CMO having suspended its 8.5G fab in Kaohsiung, southern Taiwan, the reports speculate that CMO will sell its 8.5G fab equipment to the China-based LCD panel maker in Foshan.

CMO sources described the reports as unfounded. They said the company is not in a rush to announce the ramp-up schedule for its 8.5G fab, as the company is currently concentrating on improving its supply chain and maximizing the profitability for its product lines. CMO's capacity is estimated to increase only 20% in 2009, the sources noted.