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HannStar Plans 7.5G TFT-LCD Panel Plant
(Taiwan Economic News Via Thomson Dialog NewsEdge)Taipei, March 22, 2006 (CENS)--David Chou, president of HannStar Display Corp., the No. 5 thin film transistor-liquid crystal display (TFT-LCD) panel maker in Taiwan, recently claimed that his company would not merge with counterparts in the industry and is planning for a 7.5th-generation (7.5G) panel plant with a scheduled investment of NT$60 billion to NT$70 billion (US$1.85 billion to US$2.15 billion at US$1: NT$32.5)
The initial targeted monthly capacity at HannStar's new 7.5G panel plant is 30,000 substrates, Chou said
Taiwan's TFT-LCD panel industry is filled with rumors of possible mergers between smaller panel manufacturers, but Chou has reiterated that his company would continue to go its own way
According to Chou, HannStar's 5G production line is profitable, and its two 3G facilities are getting close to profitability after being refurbished. He said that HannStar would announce its 7.5G project after the 5G plant enters full-capacity production with a monthly output of 120,000 substrates
"As all the 7G plants around the globe are running smoothly," Chou claimed, "HannStar will pass up on its originally planned 6G project and set up a 7.5G facility in order to gain the greatest advantage in the LCD TV panel business." Currently, HannStar's 5G facility turns out 90,000 substrates per month, which can be cut into about one million large-sized panels. With the addition of the capacities at the company's two 3G plants, the company's total monthly output is about 1.2 million large-sized panels
According to Chou, the most suitable panel size for a 5G 1,200mm X 1,300mm substrate is 19-inches, but the 5G substrates can also be used to produce 23-, 26-, or 22-inch widescreen panels. Chou claimed that his company expects to ship about 200,000 15- and 19-inch HANNS G-brand LCD monitors in the first quarter, about 70% of which will measure 19-inches. The vice president added that about 30,000 HANNS G 19-inch monitors are expected to be sold during the period in Taiwan, making it the No. 1 brand in the segment and effectively digesting HannStar's panel capacity
In addition, HannStar has utilized a 3G plant to produce 7-inch medium-sized panels, with a monthly shipment of about 80,000 such panels. The company also plans to devote another 3G facility to producing small-sized application panels in July or August this year
Chou said that HannStar has won product certification for small-sized panels from Casio of Japan, and is scheduled to begin shipment of the products to the Japanese company in May. The company has also sent some cell-phone panel samples to targeted customers for certifications
Global 7G-beyond Projects Company G Substrate Size (mm) Monthly Capacity (10,000 substrates) Mass-production Date Economic Size (inch) Samsung 7 1,870x2,200 16.5 Already (with output continuously ramp up) 40, 46 LPL 7.5 1,950x2,250 9 Pilot Production 42, 47 AUO 7.5 1,950x2,250 6 4Q 2006 42, 47 CMO 7.5 1,950x2,250 5 First Half, 2007 42, 47 HannStar 7.5 1,950x2,250 3 -- 42, 47 Sharp 8 2,160x2,400 3 October 2006 50- and -over Source: The companies.
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