New Major Private Investments in Taiwan to Drop 2% to NT$868.2 B. in 2006

Taipei, Jan. 24, 2006 (CENS)--Taiwan' s new large-scale private investment projects by manufacturing industries and related technology service industries for this year amount are projected at NT$868.2 billion (US$25.54 billion at US$1 = NT$34), edging down by 2% from last year' s NT$885.9 billion (US$26.1 billion), according to the statistics released by the Industrial Development Bureau (IDB) under Taiwan' s Ministry of Economic Affairs (MOEA).

Seeing the upward trend in the global market for liquid crystal display (LCD) panels and semiconductor products, the IDB predicted that the value of the island' s investment in large-scale projects by private manufacturers and enterprises might break NT$900 billion (US$26.47 billion) within three years.

The IDB indicated that large-scale investments for this year focus on the semiconductor and LCD panel industries, with an estimated investment value of NT$200 billion (US$5.88 billion) to be launched by the former and NT$300 billion (US$8.8 billion) by the latter.

In the next three years, Taiwan' s leading LCD panel makers, including Delta Electronics Inc., Chi Mei Optoelectronics Corp., Chunghwa Picture Tubes Ltd., and Quanta Display Inc., are expected to invest a total of NT$700 billion (US$20.59 billion) to establish 7.5th-generation (7.5 G) or above panel plants. In addition, major providers of LCD glass substrates for LCD panel manufacturers such as Corning Glass Taiwan Co., Asahi Glass Co., and Nippon Electric Glass Co., are planning to launch NT$100 billion (US$2.94 billion) to set up their new glass melting furnaces.

Allied Material Technology Corp. and SinTek Photronic Corp., professional manufacturers of color filters, together with Delta, Chi Mei, Chunghwa Picture Tubes, and Quanta Display, which have in-house color filter plants, are reportedly ready to jointly launch a NT$100 billion (US$2.94 billion) investment in the area.

As for other industries, the investment to establish the new Kuo Kwang Petrochemical Company is said to reach NT$400.5 billion (US$11.78 billion), and after the company is formed, its annual production value is estimated to reach NT$343.4 billion (US$10.1 billion). It is believed that Kuo Kwang may help bring in an additional value of NT$657.5 billion (US$19.34 billion) for related industries. In addition, Formosa Plastic Group, Taiwan' s largest enterprise conglomerate, is reportedly seeking to set up a large-sized steel plant in central Taiwan, with an investment value of NT$370 billion (US$10.88 billion).

The IDB' s statistics showed that last year, large-sized private investments totaled NT$885.9 billion (US$26.1 billion) for a slight drop of 2% from a year earlier, yet the actual value exceeded the target of NT$867 billion (US$25.5 billion) by 2.19%.

Of 2005' s total investment value, NT$174.5 billion (US$5.13 billion) came from the semiconductor industry, NT$338.3 billion (US$9.95 billion) from the LCD industry, and NT$11.8 billion (US$347.1 million) from digital content providers.