Chi Mei Optoelectronics (CMO) Utilization Rate Increase 20%

Thanks to China’s consumer electronics promotion program, Chi Mei Optoelectronics (CMO) is experiencing an increase in its utilization rate by 20% recently. China’s CE promotion program will generate demand for LCD panels and because China is a very large country with enormous financial wherewithal the demand can be quite large and last for quite some time. CMO’s utilization rate was 45% in Q4’08 and the company is expecting overall utilization rates to be 35%-40% in Q1’09. Despite the spike in demand for its LCD panels the overall utilization rate is still quite low and is expected to be lower than what it was in Q4’08. Unless the world economy starts rolling again, utilization rates for CMO and other LCD manufacturers in Taiwan will remain depressed.

Source: DigiTimes

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