U.S.-based Qualcomm Inc will invest nearly $1 billion in Taiwan this year to build a display plant to tap growing demand for new portable devices including electronics reading devices.

Taiwan's economics ministry said in a statement on Monday that Qualcomm had decided to build the new factory in Hsinchu, northern Taiwan. It did not say when the plant would be built.

The plant would use power-saving Mirasol technology to produce smaller size panels. Analysts say Mirasol and other similar displays are suitable for mobile devices including mobile phones, navigation devices as well as electronics readers.

The investment had first been reported in August.

The ministry said Qualcomm's investment would help boost display technology and create job opportunities in Taiwan, which is already home to Chimei Innolux Corp and AU Optronics Corp, the world's third- and fourth-largest LCD makers.

In Taiwan, major tech firms including Acer Inc, Asustek Computer Inc and Delta Electronics Inc have recently introduced e-readers that allow users to read books and magazines downloaded from the Internet.

Qualcomm and Taiwan's Cheng Uei Precision Industry Co Ltd set up the Sollink joint venture about two years ago to make handset displays using Mirasol technology.

(Reporting by Baker Li; Editing by Jonathan Standing)

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