Having held back construction plans for its seventh generation TFT LCD (Thin-Film Transistor Liquid Crystal Display) panel plant, AUO has also decided to put off one-third of the equipment installation for its sixth generation TFT LCD panel plant. The sixth generation plant is currently in the equipment installation process, however, to lower expenditure in 2005, equipment set-up will stop when the plant's monthly capacity reaches motherglass input of 60,000 units. The full monthly 90,000 substrate input capacity goal, originally to be reached by the first half of 2005, will be postponed to 2006.

 

AUO's sixth generation LCD panel plant, situated in CTSP (Central Taiwan Science Park), commenced its pilot run in October; so has the sixth generation CF (Color Filter) line located in the plant. Both are slated to enter mass production in the first quarter of 2005. Nonetheless, the equipment installation schedule for AUO's sixth generation plant may again be adjusted if changes occur in the industry's prospects.

 

Although AUO had planned for its sixth generation plant to concentrate on 32" and 37" LCD TV panel production, foggy prospects in the LCD TV industry and intense price competition in the LCD monitor panel market have brought the company to allot a part of the plant's capacity to LCD monitor panel production. Presently, AUO is resolved in chiefly producing LCD monitor panels 19" and above, as a means to tune the sixth generation plant's initial yield rate.

 

In response to the influx of orders for small and medium panels, all of AUO's LCD panel plants below the fourth generation will turn to small and medium production in the future. As the realignment will result in insufficient monitor-use panel output, AUO also has plans to set up a third fifth generation plant in CTSP, slated to mass-produce monitor panels in the third quarter of 2005; monthly input set at 60,000 substrates.

 

At the same time, after reevaluating plans for its 7.5 generation plant, Chi Mei Optoelectronics has announced the delay of part of its 5.5 generation TFT LCD panel plant equipment installation as well. By the end of 2005, Chi Mei will only set up the equipment adequate for a monthly input of 90,000 substrates , 30,000 down from the 120,000 substrate capacity originally planned. Equipment set-up for the remaining 30,000 substrate capacity will wait until 2006.

 

Chi Mei's 5.5 generation LCD panel plant is currently in the equipment installation stage, for which the first phase will see completion by November 2004, and proceed to pilot run in December, and mass production in the first quarter of 2005.

 

TFT LCD panel plants above the fifth generation are usually tailored for LCD TV panel production, however, intimidating substrate and equipment costs have caused panel makers like AUO and Chi Mei to act cautiously before the demand for LCD TVs takes off completely.