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The mobile device display arm of Compal Electronics Inc has received approval from the Taiwan government to invest US $21 million in the Shanghai arm of a subsidiary it recently acquired from Philips Electronics.
Compal's Taiwan-based Toppoly Optoelectronics Corp, a liquid crystal display maker, took over the global operations of Philips Mobile Display Systems in November 2005. However, at that time it was restricted by the government from acquiring the Shanghai arm due to Taiwan investment rules.
Toppoly would hold a 100 percent stake after the investment, according to a statement on Friday from the investment commission.
Compal is the world's second-largest contract notebook computer maker.

Copyright Reuters, 2006

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