The rumor that CEC has acquired IRICO now proves to be true. In addition, both Rainbow Electronics (00438.HK) and its subsidiary Rainbow Holding (600707.SH) under IRICO have been acquired by CEC.

Nevertheless, what role IRICO will play under the control of CEC should be made clear. An insider in Guangdong flat panel industry comments that IRICO has three choices: glass substrate, OLED and LED. CEC has not decided yet to develop OLED in Nanjing or Shunde. ‘Whatever one plans to do, money should be the first, following which is the talent’. CEC has enough money; therefore, stabilizing talents of IRICO tops its concerns.