Chunghwa Picture Tubes (CPT) will Invest in G7 or Larger

CPT will invest NT$220 billion (~US$7 billion) to build a G7 or larger fab in Taiwan's Central Taiwan Science Park (CTSP). CTSP's preparatory office disclosed that CPT will acquire a 40-hectare land located at CTSP Houli Base. CPT clearly wants to compete with the big guys (Sharp, LG.Philips LCD, Samsung, AUO, CMO) in the large LCD TV space where there is currently a war going on between 37", 40", and 42".

Samsung, holding hands with Sony in its S-LCD venture, is pumping out as many 40" LCD TV TFT LCD panels as they can and selling them for really aggressive prices to both the Samsung brand and Sony brand before the 42" wave hits the markets. Currently, LG.Philips LCD (LPL), AUO and CMO make up the guys who will be producing 42" en-mass. LPL already produces thousands of 42" panels a month.

AUO will build a G7 (1950*2250mm) fab in the same location at CTSP Houli Base and a G8 fab at the Kaohsiung Sicence Park. CMO has stated that it will build G8 plants to compete in the 50"+ LCD TV space. Source: MyEGov

It is interesting to note that CPT had a net loss of US$42 million in Q1'06 because of steep ASP declines for TFT LCD modules. Well, other LCD manufacturers experienced similar ASP declines but made millions. I'm not sure if putting more money into a business that can't weather the downturns is a good idea. 

[tags]CPT, G7, Chunghwa Picture Tubes, Display Manufacturer, Sharp, LG Display, Samsung, AU Optronics, AUO, CMO, Chi Mei Optoelectronics, LCD TV, S-LCD[/tags]

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