Amid shrinking demand and signs of an industry glut, Taiwanese LCD panel makers are now joining Korean and Japanese makers in putting off capacity expansion. While 7G capacity is at the center of this wave of adjustments, some makers' 6G plants may experience delays in coming on-line.

 

AUO announced that the construction schedule and technology level of its planned seventh-generation plant would be re-examined, refraining from setting a definite timetable. Instead, the maker has planned to build within the scheduled 7G plant a 5G production line, capable of producing 60,000 units each month.

 

CMCS has also decided to momentarily halt construction of its 7.5G plant until mainstream specifications materialize in the market. Also on hold is the 5G capacity expansion. However, CMCS' 5.5G expansion is proceeding according to plan, with mass production slated for the first quarter of 2005.  

 

AUO and CPT were originally expected to ramp up mass production on their 6G plants in the first and second quarter of 2005 respectively. However, postponements are likely to continue as Japanese CF (Color Filter) suppliers such as Toppan and DNP are experiencing delays in production. Added that Taiwanese CF makers Sintek and AMTC are lagging behind their Japanese counterparts in 6G technology and plant construction, component shortages are likely to arise and further affect panels makers' expansion plans.

 

Quanta Display has not changed production schedule for its 6G plant. Equipment is expected to be installed in January 2005.

 

Hanstar's 6G capacity has been adjusted from 90,000 units to eventually 30,000 units due to financial concerns as well as the cool-down of the industry. The maker expects to install 6G facilities in March 2005.