Applied Materials to Set Up Display Panel R&D Center in Taiwan

Taipei, Dec. 18, 2012 (CENS)--After four years of evaluations, Applied Materials Inc., currently the world's No.1 semiconductor-manufacturing equipment supplier, has decided to choose Taiwan over South Korea as the location for its display-panel R&D center.

The equipment supplier will develop 8.5-genertion liquid-crystal display (LCD) and active-matrix organic light emitting diode (AMLED) equipment at the center, which will be located in the Southern Taiwan Science Park.

Industry executives estimated the R&D facility to provide a huge boost to Taiwan's display-panel industry at a time when the island is obviously losing ground to South Korea in global display-panel market. Samsung has begun volume production of AMLED panels while Taiwan's panel makers are still in early stage of the development of the next-generation display technology.

The equipment supplier is estimated to spend around NT$5 billion (US$172 million at US$1:NT$29) in the investment project and making procurements in Taiwan.

Industry executives felt that behind Applied Materials' decision to site the facility in Taiwan instead of South Korea are close business ties between Taiwanese IC and LCD makers and the equipment supplier, competitive production cost compared with South Korea and Japan, well-developed peripheral-equipment industries, tight IP protection, and intensified economic cooperation between Taiwan and mainland China.

In recent years, Taiwan has been the world's heaviest buyer of semiconductor and LCD equipment. Prominent buyers include chipmakers Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) as well as LCD-panel makers AU Optronics Corp. (AUO) and Chimei Innolux Corp.

In 2008, Applied Materials invested around US$17 million to expand output of equipment for LCD panels and thin-film solar products at its facility in the southern Taiwan park.