June 30, 2004
German conglomerate Merck has announced its decision to build the first liquid crystal plant ever in Taiwan and will hold a groundbreaking ceremony for the plant, to be located in Guanyin, Taoyuan County, on June 25.
While Merck's Taiwan subsidiary, Merck Display Technologies Ltd., already manufactures
ITO (indium tin oxide) glass and supplies liquid crystal in Taiwan, this new liquid crystal plant, requiring an initial investment of
NTD 900 million, further demonstrates Merck's commitment to long-term investment in Taiwan.
Liquid crystal, a material that costs more than gold, accounts for just 3% of thin-film-transistor liquid crystal display (TFT-LCD) production costs. However, with the combined production value of Taiwan's five largest flat panel makers reaching a whopping
NTD 500 billion annually, this mere 3% translates into big business opportunities at
NTD 11 billion per year.
Until this plant is completed, flat panel makers in Taiwan must continue to rely on imports for all of their liquid crystal supplies. Industry executives say that the construction of this new plant will not simply lower costs, but will also save time, and thereby raise the overall competitiveness of the liquid crystal display industry in Taiwan.
The decision to locate this plant in Taiwan and the promotion of Merck Display Technologies Ltd. general manager Lee Shih-lee to Merck's Asia Pacific CEO reflect Merck's increasing confidence in Taiwan. (Agencies, Taipei Times, Commercial Times)
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