August 1, 2004
Japan's Nitto Denko Corp., having just broken ground for a polarizing film plant in the Central Taiwan Science Park (CTSP) in April, is already making preparations for the construction of another plant in the park in order to meet growing demand for polarizing film among the park's TFT-LCD display panel makers. Park authorities report that Nitto Denko applied for four hectares of land for its first plant and is now seeking an additional four hectares in preparation for future plant expansions. With the park already filling up, park managers are quickening their search for land for the park's second and third stages. Taiwan Nitto's plants, designed to fulfill around 55 to 60 percent of the domestic demand for polarizing films used in TFT-LCD panels, will be crucial links in the supply chain for display panel makers in the science park.
Nitto Denko is the largest of the world's six polarizing film manufacturers, supplying around 60% of the global market, and is the first foreign company to set up production facilities in the CTSP. It has invested
NTD 2.242 billion in the establishment of Taiwan Nitto Optical Co.'s CTSP plant, which will manufacture large polarizing films for 30-inch TFT-LCD television receivers. This plant was planned in coordination with AU Optronics, which will kick off production at its sixth generation flat panel plant in the park in the first quarter of 2005. With production scheduled to commence before the end of this year, Taiwan Nitto expects to generate revenue of
NTD 10.6 billion in 2005 and
NTD 16.9 billion in 2006.
Taiwan's five "Flat Panel Tigers," AU Optronics, Chi Mei Optoelectronics Corp., Chunghwa Picture Tubes, Hannstar Display Corp. and Quanta Display, are all throwing themselves into upgrading their manufacturing capabilities to 5.5 or sixth generation flat panels, with some already looking into the establishment of seventh generation plants. AU Optronics already has plans to invest
NTD 400 billion in the CTSP, while Chunghwa Picture Tubes intends to invest
NTD 420 billion.
The Ministry of Economic Affairs predicts that TFT-LCD televisions will become more affordable in the not-so-distant future, which will greatly stimulate the production of TFT-LCD panels. Taiwan is currently the world's second largest source of large-sized TFT-LCD panels, accounting for 35% of global supply. This percentage is forecast to climb to 40% this year, putting Taiwan in the number one spot ahead of current market leader South Korea. In 2006, annual production value of Taiwan's flat-panel-display industry should reach
NTD 1.37 trillion.
(Economic Daily News, AmCham Taipei Topics, Global Sources, agencies)
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