Chunghwa Picture Tubes (CPT)… BTW, what a weird name that is: Picture Tubes? The world is going flat and tubes are going out the window. Anyway, CPT acquired a 22% stake in Sintronic Technology. Sintronic is a CCFL manufacturer that produces cold-cathode fluorescent lamps (CCFLs). CPT paid about $9 million through it's wholly-owned subsidiary Grand Cathay Optronics, making CPT the largest shareholder of Sintronic. That makes sense since CPT is Sintronic's largest customer.
Why is CCFL so important? It takes 16 CCFL lamps to luminate a 32" LCD TV. That's a lot more than the 2 you need to light up a LCD monitor or just one for a NBPC. With LCD TV shipments expected to continue growing by another 20 million+ this year, many folks have talked about the possibility of a CCFL shortage and in some cases high-quality CCFLs with U- or S-shapes are in short supply as they reduce the number of CCFLs needed leading to a reduction of cost. High-quality CCFLs generate more color gamut from the average CCFL's 72% NTSC to almost 80% NTSC buy using better phosphor coatings. So, CPT is making a smart move that cost them only $9 million to secure any CCFLs they might need.