Qualcomm to build new display plant in Taiwan -paper

TAIPEI Aug 25 (Reuters) - U.S.-based Qualcomm Inc (QCOM.O) plans to invest an additional $2 billion in Taiwan to build a display plant to tap fast-growing demand for electronics reading devices, a local newspaper reported on Wednesday.

Qualcomm and Taiwan's Cheng Uei Precision Industry Co Ltd (2392.TW) have jointly set up Sollink about two years ago to make handset displays using Mirasol technology from Qualcomm MEMS, a display unit of the U.S. chipmaker.

The Chinese-language Commercial Times quoted Cheng Uei Chairman T.C. Gou as saying that Qualcomm would expand its investment in Taiwan, and Gou gave the dollar figure.

Gou added that his company is evaluating cooperation with Qualcomm on the new investment, the paper said.

A Cheng Uei deputy spokesman declined to comment and Qualcomm's officials in Taiwan could not be reached for comment.

Analysts say Mirasol and other similar displays are suitable for mobile devices including mobile phones, navigation devices as well as electronics readers.

By 0234 GMT, Cheng Uei shares rose 0.7 percent, outperforming the main TAIEX share index .TWII, which was down 2 percent. (US$1=T$32) (Reporting by Baker Li; Editing by Ken Wills)