LCD CF (Liquid Crystal Display Color Filter) makers Sintek and South Sintek have officially merged at a rate of 1.4 shares of South Sintek common stock for each common share of Sintek, the surviving company. Sintek's capital now totals NT$8 billion (US$250 million; US$1= NT$32). The merger is expected to heave Sintek's CF monthly capacity to 1.4 million units, if averaged out to 17" monitor panels.

 

Sintek originally owned a 3.5 generation and a fourth generation CF line, while South Sintek was a specialized fifth generation CF supplier; Helix, an affiliated company, produces backlight modules. Vertical integration within the group is expected to lower procurement cost, reduce workforce size, and facilitate technology transfers.

 

Sintek plans to allocate a part of the combined R&D staff to the construction of its sixth generation CF plant. Through the merger, Sintek also hopes to gain access to technologies, such as spinless coating, which South Sintek acquired from DNP. Sintek's in-house coater production is now 40% to 50% operational; the output will be adopted in future product development and in fifth generation lines.

 

South Sintek was a spin-off of Sintek, who held 66% of its stocks. The remainder of South Sintek's shares were divided mostly between Hannstar and DNP.

 

Apart from the merger, Sintek has also raised its shares in Helix Technology to 51%. The latter will become a subsidiary under the Sintek Group.