The swift and deep plunge in 15" LCD monitor panel prices has moved Hannstar to rework its production line strategies in 2005. Hannstar will be devoting a third generation factory to small and medium size panel production by June 2005, and moving the production of all 15" monitor panel for monitor applications to fifth generation lines.

 

One of Hannstar's third generation plants has already reached a monthly input volume of 20,000 substrates for small and medium panel production. The company aims to achieve full capacity of 50,000 substrates by June 2005.

 

As for larger sizes, Hannstar has pointed to the tight US$50 gap that separates 15" and 17" panels for LCD monitor, claiming that no more price reductions will fall below the US$125 low seen at present. Hanstarr also plans to allocate more fifth generation capacity to 19" panel production as widespread adoption of 17" panels brings increasingly tough competition. Notebook PC panels are currently handled on the company's third generation line.