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Sintek Signs Deal With SMD to Supply LTPS Production and Touch Sensors

2011/02/18
Taipei, Feb. 18, 2011 (CENS)--The Taiwan-based Sintek Photronics Corp., a touch panel maker affiliated with Walsin Lihwa Group, has signed a deal with Samsung Mobile Display (SMD) to supply LTPS (low temperature poly-silicon) production and touch sensors, confirmed the chairman W.I Chang.

Chang said that Sintek's LTPS will be shipped in the form of backplanes to SMD mainly for production of AMOLED (Active-matrix organic light-emitting diode) displays, adding that his firm will also supply AMOLED touch panels to the client in the future.

The firm is planning to acquire a factory located in Southern Taiwan Science Park from Hannstar Display Corp. to set up 5.5th-generation LTPS production lines, with the investment estimated at NT$20 billion at least. With technical support from SMD, Chang said his firm is scheduled to activate the lines at the end of this year at the earliest, with monthly output of 50,000 substrates in the first stage of construction.

Industry insiders indicated that the Sintek-SMD alliance is the first cooperation between Taiwanese and Korean firms on production of AMOLED displays, which will help Sintek to sharpen its competitive edges to boost its position in the industry, while allowing SMD to add more LPTS and touch panel supply sources.

Noteworthy is that Sintek is likely to reinforce its partnership with SMD in the future, as the former will increase its capital by NT$6 billion through issuing 200 million shares for NT$24-30 per share through GDRs, and the latter is believed to stand the chance to become a shareholder in Sintek.

Slim, lightweight and power-saving, AMOLED displays have been seen as a next-generation display, ideal for use in electronics devices as handsets, tablets PCs and TVs, with SMD the only supplier in the world. Although most Taiwanese firms have preferred to join hands with Japanese partners to counter SMD, Sintek's cooperation with the Korean firm, however, has set a more concrete cooperation pattern for players who want to gain solid grounds in the segment, noted market observers.

(by Steve Chuang)
 
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