Taiwanese TFT-LCD (Thin Film Transistor Liquid Crystal Display) panel maker HannStar Display confirmed reports that the company will shut down its LCD module assembly line in Kaohsiung, Taiwan, to be effective on November 1, according to a report by Apple Daily. HannStar plans to transform the Kaohsiung facility into an R&D center and will therefore reduce the current workforce of more than 600 to about 200.

As HannStar ceases module assembly in Kaohsiung, the company's module assembly operations will center on its China facilities in Nanjing and Wuhan. Furthermore, HannStar plans to inject an additional US$7.2 million investment to expand the production capacity of its Wuhan facility, named HannStar-TPV Wuhan. The Wuhan facility, a joint venture between HannStar and TPV, mainly produces modules for use in 17-inch widescreen and 19-inch LCD monitor panels and currently sports a monthly capacity of more than 200,000 units.