While most of its rivals prefer LCD, Chinese television maker Changhong is banking on plasma screens.

The Sichuan-based television giant says it will spend US$300 million on the plasma television sector and will work with domestic tube maker Rainbow Group on production of the new line of plasma screens.

The project will be started in the first half of this year and is expected to be completed within 2-3 years.

According to Changhong, the first schedule of the production line will yield 700,000 next-generation plasma screen each year, and the second schedule of the line will produce 1.6 million per year.