Taiwan Aims For 60% FPD Equipment Self-content Rate This Year

Taipei, Aug. 6, 2009 (CENS)--The self-content rate in homegrown flat panel display (FPD) manufacturing equipment broke 50% in 2008 and is expected to aim for a new goal of more than 60%, or an annual production value of NT$51.4 billion (US$1.58 billion at US$1:NT$32.5), according to the Ministry of Economic Affairs (MOEA).

In order to upgrade the global competitiveness of the local FPD industry, the Industrial Development Bureau (IDB) under MOEA in 2006 began executing a plan to double the island's FPD-equipment self-content rate to help build panel supplier-centered supply chains in Taiwan.

Statistics showed that the self-content rate in the FPD manufacturing equipment in Taiwan was only 5.6% in 2004, while the rate in parts and consumable materials have also been elevated to 71.3% last year from 12.5% in 2004.

The MOEA also aims to raise the self-content rate in key parts and materials to exceed 80% (generating an annual production value of more than NT$16.3 billon, or US$501.5 million).

Though facing bad global economic factors, MOEA said that flexible display panels and solar cells are two rapidly rising and star industries.

Sun Houng, chairman of Mirle Automation Corp., the largest in automation system integrators and related product manufacturer in Taiwan, pointed out that there are many risks for equipment makers in solar-cell equipment development and production.

Sun says that the development of solar-cell market now basically rely on governmental subsidies, declines of which would impact the overall line as has the global financial turmoil.

Taiwan FPD Parts Sector's Self-content Rate Unit: NT$100 million
	2006	2007	2008	2009 (estimates)
FPD Parts Production Value	52.5	102.8	153	209
Parts Market	150	205	218	260
Self-content Rate	35.0%	50.2%	70.2%	80.4%
Source: Metal Industries Research & Development Centre (MIRDC)