Sumika is an affiliate of Sumitomo Chemical. The company is expected to delay the expansion of polarizer capacity in Kaohsiung Science Park, Taiwan, by three months. Sumika will expand capacity by adding two new polarizer lines. With the recent buildup of LCD inventory up and down the supply chain, it would be wise to meet demand with current capacities and delay expansions until most of the inventory has been cleared out, which will take about a quarter, in my opinion.
A capacity of 50,000 polarizer sheets per month is based in Hsinchu Science Park and was completely roughly around September 2005 timeframe. Another subsidiary of Sumitomo is STI Technology that manufacturers color filter and supplies the Taiwanese customers from Japan. Dongwoo STI is another subsidiary of Sumitomo that is located in South Korea and operates two G5 generation color filter plants with a combined capacity of 120,000 polarizer sheets per month and has already increased to 160,000 sheets by the summer of 2005.
Back in January 2006, Sumika was targeting China-based LCD makers such as SVA-NEC and BOE. Sumika and PrimeView set up a G2.5 color filter in 2005 with an initial investment of $430 million. Equipment was installed in mid-2005 and the line commenced mass production in October 2005 with current yield rates at 90%. The G2.5 color filter fab has a monthly input capacity of 50,000 substrates for TFT LCDs and a 70,000 monthly input capacity for STN. PVI takes 80% of production.