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October 10, 1999

Taiwan’s New TFT-LCD Makers Face Parts Shortage

By CBR Staff Writer

So many new manufacturers are entering the TFT-LCD panel business in Taiwan that there is likely to be a serious shortage of key components such as glass substrates, driver ICs and polarized panels, according to a report in the Commercial Times. Quoting industry insiders the paper said newcomers to the market such Chi Mei

Optoelectronics Corp, Acer Display Technology Inc, Unipac Optoelectronics Corp, HannStar Optoelectronics Corp and Chung Hwa Picture Tubes Ltd may find their manufacturing plans severely affected as their plants come online during the coming few months.

In the past two months, and even without factoring in the effects of the Taiwan earthquake, the industry has reported a tight supply of passive components such as capacitors, resistors and inductors, the report said. It claimed local makers were taken by surprise by the sudden increase in demand for TFT-LCD panels.

Local output of glass substrates will not be able to keep up with demand from the industry either, particularly as the new players attempt to ramp up production. Further adding to the problems is a shortage of driver ICs, another key component of TFT-LCD panels. All available capacity at local IC manufacturers is fully booked for the next four months, and new entrants will have to hope they can get supplies from Japan or the US, the paper said.

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