Local Content for Flat Panels in Taiwan Hits Record High
2008/01/22 | By Ben ShenTaipei, Jan. 22, 2008 (CENS)--Taiwan's efforts to localize production of flat-panel manufacturing equipment, and parts and consumables paid off with local contents hitting record highs of 40% and 50% respectively, supplanting NT$50 billion (US$1.54 billion at US$1:NT$32.3) worth of imported products last year.
Over the past year, domestic leading TFT-LCD (thin film transistor-liquid crystal display) manufacturers, including Chi Mei Optoelectronics Corp. and AU Optronics Corp., began releasing orders for production equipment to domestic suppliers.
It is expected the local contents for TFT-LCD production equipment and parts and consumables will be raised to 50% and 70%, respectively this year.
Huang Ying-chien, a section chief of the Industrial Development Bureau under the Ministry of Economic Affairs, said domestic larges-sized TFT-LCD firms have no longer relied on the supply of foreign-made production equipment. As Chi Mei and AUO will increase capital expenditure to facilitate establishment of new-generation plants, domestic suppliers of production equipment and parts and consumables in this line will see local contents further rise this year.
To challenge higher local contents for domestically made TFT-LCD production equipment, the IDB has instructed the government-backed Metal Industry Research and Development Centre (MIRDC) to introduce in advanced manufacturing technologies for flat panel production equipment and offer technologies for 100-strong parts and consumables to domestic firms this year. In this way, domestic annual production value for TFT-LCD production equipment and related parts and consumables will hit NT$65 billion (US$2.01 billion) this year.
With an aim to boost local production of TFT-LCD production equipment and related parts and consumables, the MIRDC has financed domestic relevant manufacturers to install large-sized precision five-axis machining centers, anode treatment equipment and precision ceramic processing machines to upgrade products.