Chunghwa Picture Tubes, Ltd. of Taiwan recently invited two Japanese firms: Nippon Electric Glass Co. Ltd. (NEG) and Toppan Printing Co. Ltd., to jointly set up an optoelectronic industry zone on the …
Chunghwa Picture Tubes, Ltd. of Taiwan recently invited two Japanese firms: Nippon Electric Glass Co. Ltd. (NEG) and Toppan Printing Co. Ltd., to jointly set up an optoelectronic industry zone on the island. Chunghwa is a major producer of large-size thin film transistor-liquid crystal display (TFT-LCD) panels. Toppan is one of the top-three LCD color filter makers, while NEG is the second-biggest supplier of LCD glass substrate in the world. Industry sources said that the two Japanese firms are quite interested in the joint investment project, which would create an integrated supply chain for TFT-LCD production in Taiwan. They also noted that the project would elevate the competitiveness of Taiwanese panel makers. The sources added that the growing global demand for TFT-LCD panels is expected to continue at least through next year, which has encouraged Chunghwa to accelerate its deployment of fifth-generation LCD panels. Chunghwa recently announced that it would invest about NT$ 60 billion (US$ 1.71 billion at US $1: NT$35) to set up fourth-and fifth-generation panel plants in Taiwan to meet the foreseeable strong demand. Chunghwa currently operates two TFT-LCD panel plants in Taiwan and is constructing two more fourth-generation facilities, while a fifth plant for fifth-generation panels is being planned. The third plant will produce 730 mm x 920 mm substrates, which can be divided economically into 14.1- and 17-inch panels. The company said that the substrate size will be larger than the 1,100 mm x 1,250 mm planned by Samsung Electronics of South Korea at its fifth-generation facilities Chunghwa said that the first-stage of its third plant construction is scheduled to be completed in June 2003 and start mass production with a monthly capacity of 630,000 panels. The second-stage construction project is scheduled to be completed in October 2004, positioning the company to become the world“s top TFT-LCD panel supplier Chunghwa calls the joint investment project an “in-house“ production strategy, which can greatly reduce the costs of material transportation, packaging, delivery and services. Chunghwa said that at least two of its back-light module suppliers have promised to take part in the project.