Abstract
After semiconductor industry, TFT LCDindustry is the 2nd pillar of Taiwan’s so-called Twin-trillion/Twin-star high-tech industry. It was as successful as semiconductor segment before. For example, in 2004 Taiwan’s overall market share of LCD panel production was world-wide number 1 as 40.3%. However, it now faces severe challenge as either going up again or going down until perishes. This paper will propose a feasible strategy for Innolux on how to conquer the key issues in Board of chair arrangement, Management teamarrangement, supply chain and stock exchange ratio before merge AUO. Besides that, we will also utilize the successful case of Mediatek merging Morning-Star as reference.