International suppliers establish TFT-LCD R&D centers in Taiwan

June 30, 2004

Swiss-based Unaxis and US-based Applied Komatsu Technology (AKT) are setting up TFT-LCD equipment R&D centers in Taiwan. Unaxis is investing NTD 1 billion to establish a TFT-LCD equipment R&D and assembly center at the Chunan branch of the Hsinchu Science-based Industrial Park. Construction of the center is scheduled to commence in August. After paying a visit in March, AKT CEO Wendell Blonigan will be back in Taiwan in mid-June to preside over the ceremony marking the opening of AKT's R&D center at the Industrial Technology Research Institute.

Unaxis, with the aim of further strengthening its market positions in Taiwan and China, has decided to move its Taiwan headquarters the new Chunan R&D center. The center is expected to start operations in 2005.

AKT has chosen to locate its R&D center at the Industrial Technology Research Institute in order to facilitate its localization strategy for flat panel equipment assembly in Taiwan. It is cooperating with Aerospace Industrial Development Corporation and other local enterprises on this plan.

In addition to the plans above, Korean TFT-LCD equipment supplier Jusung and its Taiwan flat panel clients plan to jointly invest in the establishment of a new company in the fourth quarter. Also aiming to localize its flat panel equipment and parts operations, Jusung intends to lend its expertise in order to cultivate four Taiwanese TFT-LCD parts suppliers.

Flat panel display consultancy DisplaySearch predicts that total capital expenditures by the world's flat panel makers will reach USD 11.3 billion this year. It also reports that Taiwan's TFT-LCD makers accounted for nearly 50% of total global expenditures on flat panel equipment in 2003, making Taiwan the top spender on such equipment and putting it far ahead of Korea which accounted for 24.5% of these expenditures. DisplaySearch forecasts that Taiwan will be responsible for 47.8% of total global TFT-LCD equipment expenditures in 2004 and will again remain the leading spender in 2005. These statistics clearly reveal the motivation for international TFT-LCD equipment suppliers to set up R&D and assembly centers in Taiwan. (Economic Daily News, IDB)

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