Taipei, Nov. 23, 2009 (CENS)--The intensifying competition among thin film transistor-liquid crystal display (TFT-LCD) panel makers in Taiwan is forcing AU Optronics Corp. (AUO), the largest panel manufacturer in Taiwan, and Innolux Display Corp. of Hon Hai Group to expand capacities, plans of which was recently announced.

Innolux, soon to be renamed Chimei Innolux Corp. after the merger with originally the No. 2 player Chi Mei Optoelectronics Corp. (CMO), will take out a syndicated loan of NT$48 billion (about US$1.5 billion), which will be used to quadruple its existing sixth-generation (6G) panel capacity, as well as plan an 8.5G facility.

The panel maker said that by the end of 2010 its 6G monthly capacity would be elevated to 120,000 from 40,000, with a 8.5G plant to be set up in the Jhunan Science Park in Miaoli County.

AUO also plans to pour about NT$100 billion (US$3.08 billion) for setting up its second 8.5G facility, the L8B. The company`s first 8.5G facility has been running and will achieve a monthly capacity of 40,000 substrates by year-end. According to equipment suppliers, AUO`s under-construction L8B facility is planned with an initial monthly output of 50,000 substrates and the final volume is 150,000 units. The new plant would be installed with equipment in the second half of 2010 and kick off mass production in 2011, they said.

Innolux expects to ship about 37 million assembled LCD monitors this year, and the volume is expected to increase 25% year-on-year (YoY) to reach 46 million to 47 million units in 2010. Including the orders for LCD TVs from Sony of Japan, Hon Hai Group is expected to soon become the world`s largest producer of both LCD monitors and LCD TVs.

(by Quincy Liang)