In­nolux, Hon Hai flat panel ven­ture to open in Q1 2016

The China Post - - LOCAL -

A 6th-gen­er­a­tion small screen joint ven­ture be­tween flat panel sup­plier In­nolux Corp. ( ) and Hon Hai Pre­ci­sion In­dus­try Co. (

), the world’s largest con­tract elec­tron­ics maker, will be­gin mass pro­duc­tion in the first quar­ter of next year.

Kuo Cheng-sha, a man­ager with In­nolux, said equip­ment is cur­rently be­ing in­stalled in the new plant, lo­cated in Luchu dis­trict in Kaoh­si­ung, and is ex­pected to churn out value-added low tem­per­a­ture poly-sil­i­con (LTPS) screens next year.

In June, In­nolux Vice Pres­i­dent Ting Ching-lung said the LTPS plant will spe­cial­ize in screens for smart­phones and is aimed at help­ing Hon Hai carve out a big­ger share of the world’s smart­phone mar­ket.

Hon Hai is one of the ma­jor share­hold­ers of In­nolux, and both sides have worked with each other closely in panel pro­duc­tion. Due to a non-dis­clo­sure agree­ment, how­ever, In­nolux de­clined to re­veal the fi­nan­cial terms of the Kaoh­si­ung joint ven­ture.

Ad­ja­cent to the LTPS panel plant, an 8.6-gen­er­a­tion flat screen plant that will pro­duce large-sized dis­plays for TV use is also un­der con­struc­tion. The fac­tory is sched­uled to kick off com­mer­cial pro­duc­tion in the third quar­ter of next year, Kuo said.

He said In­nolux is cur­rently fo­cused on large- sized screens for ul­tra-high def­i­ni­tion 4K2K TV pro­duc­tion but in­tends to take aim at more ad­vanced 8K4K TV pro­duc­tion cater­ing ini­tially to the Ja­panese mar­ket and then to the Chi­nese mar­ket.

At present, In­nolux ac­counts for more than 50 per­cent of all 4K2K panel ship­ments world­wide, ac­cord­ing to Kuo.

Kuo made the com­ments on the side­lines of the 2015 In­ter­na­tional Touch Panel and Op­ti­cal Film Ex­hi­bi­tion, also known as Touch Tai­wan, which kicked off Wed­nes­day and will run through Fri­day at the Nan­gang Ex­hi­bi­tion Hall in Taipei.

At the event, AU Op­tron­ics Corp. ( AUO, ) Chair­man Paul Peng ( ) said the global flat panel in­dus­try is un­likely to see vis­i­ble peak sea­son ef­fects in the sec­ond half of this year, but his com­pany still hopes to im­prove its bot­tom line de­spite the un­fa­vor­able cir­cum­stances. AUO is a ri­val of In­nolux. Peng said AUO will con­tinue to up­grade its pro­duc­tion tech­nol­ogy to boost profit mar­gins rather than pur­sue an in­crease in ship­ments.

At the open­ing cer­e­mony of Touch Tai­wan, Eco­nomic Af­fairs Min­is­ter John Deng ( ) said the min­istry will push for a com­mon spec­i­fi­ca­tion plat­form for flat panel sup­pli­ers across the Tai­wan Strait, a move which is ex­pected to in­crease co­op­er­a­tion be­tween Tai­wan and China.

De­spite in­creas­ing cross-strait co­op­er­a­tion, Deng said the min­istry will con­tinue to take steps to im­prove the lo­cal in­vest­ment en­vi­ron­ment and pre­vent a brain drain in a bid to en­cour­age Tai­wanese flat panel firms to stay in Tai­wan rather than re­lo­cate to China.

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