Sixth manufacturer admits to LCD price fixing

A sixth manufacturer had admitted to taking part in a massive cartel operation to drive up the price of LCD screens.

Taiwanese manufacturer Chi Mei Optoelectronics has admitted to taking part in the scam, which included some of the biggest names in the industry. The company has agreed to pay US$220 million in damages, bringing the total fines issued in the case to more than US$860 million.

“Chi Mei carried out the conspiracy by agreeing during meetings, conversations, and communications to charge prices of TFT-LCD panels at certain pre-determined levels and issuing price quotations in accordance with the agreements reached,” said the FBI in a statement.

“As a part of the conspiracy, Chi Mei exchanged information on sales of TFT-LCD panels for the purpose of monitoring and enforcing adherence to the agreed-upon prices.”

The FBI said the conspiracy to inflate prices began in 2001 and was broken last year. It estimates the global LCD market was worth US$70 billion at the time.

AT&T and Nokia have both filed legal action against those involved for the extra costs they incurred buying screens for phones.