Panel Product Mix Announcements

AUO

The maker's three 3.5 generation plants to gradually turn to the production of small and medium size TFT LCD (Thin Film Transistor Liquid Crystal Display) panels, while its fourth generation plant will focus mainly on the OA (Office Automation) segment. Considering the high flexibility, efficiency, and cost of the three fifth-generation plants, they will be encompassing as well as shifting between the notebook PC, monitor, and LCD TV sectors. As to the sixth-generation plant, 60% of the capacity will be allocated to output large monitor panels 19" and up, while the remaining 40% will be used to manufacture 32" and 37" LCD TV panels.

The maker's first quarter capacity usage rate is expected to shoot up from 75% in the fourth quarter of 2004 to 95%.

BOE Hydis

To significantly increase the production share of LCD panels using its special AFFS (Advanced Fringe field Switching) technology. Will move more aggressively into the production of wide-viewing-angle panels for mobile devices in the second half of 2005. As to the large panel segment, the maker is considering applying the AFFS technology to all 26" and 32" LCD TV panels manufactured at BOE OT's fifth generation line, starting in the second half of 2005.

Hannstar

In its fifth-generation plant, 20% of total capacity will be dedicated to produce 20.1", 23", and 26" LCD TV panels, while most of the remaining capacity will be divided equally between 17" and 19" monitor panels. Under preliminary assessments, its sixth-generation plant will be devoted to the production of 32" and 37" LCD TV panels.

In 2005, 65% to 70% of the maker's total shipments will be comprised of monitor panels, whereas notebook PC and LCD TV panels will each take up around 15% of the shipment share.

Seeing how the market for 15" monitor panels has been shrinking, Hannstar plans to convert the production at both of its third-generation plants, one to concentrate on small and medium size panels, the other to super-slim notebook PC panels.

LPL

Has plans to procure second-generation AM-OLED (Active Matrix Organic Light Emitting Diode) equipment for set-up by the third quarter of 2005 and for mass production of small and medium size panels by 2006.

Univision

To roll out 1" to 1.5" full color OLED (Organic Light Emitting Diode) panels in the second or third quarter of 2005.

Major Panel Events

AUO

Will allocate 40% of the capacity at its sixth-generation plant for LCD TV panels. Planning to restart its seventh-generation construction plan, with the monthly capacity initially set at 20,000 to 30,000 units; the maker guarantees a decision pertaining to its new-generation plans in the first half of 2005.

BOE Hydis

Deliberating on licensing its AFFS technology to Taiwanese TFT LCD panel makers, following its AFFS patent license agreement with Hitachi near the end of 2004.

CDT

Entering the second phase of pilot run for 12" VGA (Video Graphics Array) PLED (Polymer Light Emitting Diode) panel production, using the roll printing method. This research is conducted jointly by CDT and Toppan.

Chi Ling

The subsidiary under CMO is setting up a LCD module line for small and medium size panels.

CMO

To decide on the drafting of its next-generation roadmap in the first quarter of 2005, and to begin making movements in the second half of the year.

5.5 generation plant now mass producing.

Capacity usage rate at its fifth-generation plant had reached 100%, yet there rests room for expansion at its 3.5 generation and fourth-generation plants, to be designated for the production of 17" and 19" panels.

CPT

Aggressively developing super-slim panels for notebook PCs, and will begin mass-producing these panels at its 4.5 generation plant in April 2005.

Hannstar

To start shipping LCD TV panels to Hitachi in March, at an initial rate of 3,000 to 5,000 units per month.

Hitachi

Kicking off mass production of LTPS (Low Temperature Poly-Silicon) TFT LCD panels for DSCs (Digital Still Cameras), using the IPS (In-Plane Switching) technology. Monthly capacity is set at 50,000 units.

LPL

Plans to expand its LCD cluster in Paju Korea by establishing a 36,363 square meter industrial site nearby, in the Hwangji Industrial Complex. The additional site will be ready for around ten of the makers' parts suppliers by 2007.

With this, the maker is considering to build a large R&D center in Unjong, in the vicinity of Paju.

Plans are also drawn out to build a second seventh-generation production line following the launch of the first in the first quarter of 2006. Construction of the first line will be completed before July, while equipment set-up is scheduled for the third quarter, to be ready for pilot run at the end of 2005.

Another expansion program is expected to take place at the maker's facilities in Gumi, Korea. Approximately US$376 million of internal funds will be invested to increase the output of LCD panels used for TVs and monitors.

Matlin Patterson

Has completed the merger and acquisition of Korean CRT (Cathode Ray Tube) maker, Orion Electronics. The US-based private equity firm will be transplanting two of Orion's CRT lines to the US, leaving only three in Korea. Future focus will be centered on the OLED and PDP segment.

Philips

Successfully developed a 5" roll-up display with a contrast ratio adequate enough for use in the daytime. The display features a resolution of 320 x 240 pixels and adopts a bi-stable material from E Ink that cuts down on power consumption. The maker pledges commercial production within two years.

Samsung

Successfully developed the world's largest TFT LCD TV panel, 82" in size, at its new 7G-1 production plant in Tanjeong Korea. The panel features high definition resolution, 92% color reproducibility, 1,200:1 contrast ratio, and a brightness of 600 nit.

Samsung SDI

Developed a 17" AM-OLED panel with the SGS (Super Grain Silicon) technology; the panel is equipped with a 1,600 x 1,200 pixel UXGA (Ultra Extended Graphics Array) resolution.

Sanyo Epson

To establish a wholly-owned subsidiary, SEHK or Sanyo Epson Imaging Devices (H.K.), in Hong Kong on April 1st 2005. The new subsidiary will take charge over its display production business, currently conducted by another whollywned subsidiary, Epson Precision (EPH), and become the maker's back-end processing center for STN (SuperTwisted Nematic) as well as D-TFD (Digital Thin Film Diode) LCD panels.

Sony

Successfully developed the world's first HTPS (High Temperature Poly-Silicon) LCD panel for front projector TVs. The technology increases display reliability and provides higher picture quality through the incorporation of an inorganic alignment layer. This new inorganic layer nearly quadruples HTPS panels' resistance to light, which will boost brightness up by 10% and quintuple the contrast ratio.

Sumitomo

Eyeing at the large display module business, Sumitomo has signed a contract to acquire a 25% share in TCL Technology Electronics (Huizhou), ramping up the latter's total capital to US$30.1 million. After the investment, TCL plans to construct 12 automatic production lines for the development, production, and sales of small CSTN (Color SuperTwist Nematic) LCD, TFT-LCD, and OLED modules. Annual capacity is projected to ultimately reach 40 million units.

Xin Ning Ai Shi

The Sino-Korean joint venture produced its first LCD module for mobile handsets in February 2005. Plans are to invest US$200 million into the construction of ten production lines, dedicated to output LCDs. Two production lines have already begun operating, while all of the remaining eight will be kicked off by the end of 2005. The maker will be capable of manufacturing large LCD panels on these lines.

Manufacturer Forecasts

BOE Hydis

Shipment of its large AFFS LCD panels to reach 300,000 units in the first half of 2005, while shipment goal for the while year is set at 700,000 units.

CMO  

Sets its LCD TV panel shipment goal at 4.5 million units in 2005, while large panel shipments are expected to amount to 20 million units in 2005, up from the 14.2 million units in 2004.

TMD      

To set up a production system capable of outputting 10 million mobile handset panels per month by the beginning of 2007.

Government Announcements

China

The State Administration of Taxation has made a tax-break in favor of Chinese TFT LCD panel makers that will be effective through 2008. The announcement will allow local TFT LCD panel makers to shorten the period of equipment depreciation to three years, while exempting them from the import tariffs for materials and consumables that they are unable to produce. There will also be no import tariffs or value-added taxes levied for the clean room construction materials and the production equipment components that the makers are incapable of producing.

Taiwan

The Industrial Development Bureau will be assisting Taiwanese TFT LCD panel makers AUO and CMO to establish equipment supply chains with domestic equipment makers such as ITTS, C Sun, and GPM. The tentative goal is to have domestic equipment make up 20% to 25% of the two panel makers' equipment procurement in 2005. The Bureau hopes to lift the percentage up to 50% by 2008.