Taipei, Dec. 3, 2007 (CENS)--The Chi Mei Group of Taiwan expects to challenge annual revenue of NT$700 billion (US$21.67 billion at US$1: NT$32.3) in 2008 due mainly to high growths from its thin film transistor-liquid crystal display (TFT-LCD) panel and related reinvested businesses, according Chi Mei Optoelectronics Corp. (CMO) president Ho Chao-yang.
CMO is currently the No. 2 maker of large-sized TFT-LCD panels in Taiwan. Ho made the statement at a recent press conference and he added that Chi Mei has chosen solar-cell products as its new target slated for special development. The group is expected to begin mass production of solar-cell products as soon as possible in the fourth quarter of 2008.
After its sixth-generation (6G) panel-plant construction project passed related environment evaluation recently, Ho said, CMO would accelerate to kick off mass production at the new facility in southern Taiwan`s Tree Valley Industrial Zone.
Ho reiterated that CMO would must construct an 8G facility and other new plants after two years of the completion of the scheduled 8G fab.
According to the president, Chi Mei Group has completed its vertical integration in TFT-LCD panel industry and many of the reinvested affiliates are expected to turn profitable and enjoy high revenue growths from 2008. Next year, Ho added, CMO`s panel shipment volume is expected to increase by 25% to 30% while the company`s profitability is expected to further strengthen.
Currently, CMO has to enlisted reinvestment losses of over NT$200 million (US$6.19 million) generated from panel-related affiliates such as Chi Mei Materials Technology Corp. (polarizer), Chi Mei EL Corp. (organic light-emit diode, or OLED) , GIO Optoelectronics Corp. (cold cathode fluorescent lamps , or CCFL) etc. Ho said that the improved operation performance of the reinvested affiliates in 2008 would help CMO further upgrade CMO`s profitability.
One of the focuses among CMO`s reinvested affiliates, according to Ho, would be the Chi Mei Lighting Technology Corp. (CMLT), which was just established in the third quarter of 2006 to produce LEDs. Currently, CMLT`s monthly revenue is only about NT$40 million (US$1.21 million), Ho said, but the affiliate`s annual revenue is expected to jump to NT$2 billion (US$60.61 million) in 2008 while it maintains a 30% to 50% annual growth in next five years. Over next five years, the president added, CMLT plans to pour a total of NT$10 billion (US$309.6 million) into expanding expiatory and packaging production lines for while-, green/blue-, and red-light LEDs.
The year 2007 is the best period since CMO`s establishment in 10 years ago, Ho pointed out, as the company`s 5G, 5.5G, and 7.5G panel plants have continuously joined production. Regarding the scheduled 8G plant, Ho said that his company would first complete construction of a plant building and then decide the mass production date according to company financial and market conditions. But even CMO decides to set up the 8G plant now, Ho said, the fastest mass production date would be in the second half of 2009.
The thin-film solar-cell is another targeted business for Chi Mei Group. Ho said that CMO would set up a new subsidiary to be responsible for the new business, while CMO would provide its LCD module (LCM) capacity for assembling future`s solar-cell products. The initial investment amount by Chi Mei in the solar-cell business would be about NT$2 billion (US$60.61 million), Ho said.
CMO Reinvested Technology Companies |
| | Major Products | `08 Revenue Goal | Capitalization (NT$100 M.) |
Chi Lin | Backlight module | 450 | 16.25 |
Chi Mei Lighting | LED dice, packaging | 20 | 10 |
GIO | CCFL | 30 | 10.6 |
Chi Hsin | Small/Medium-sized LCM | 100-150 | 24 |
Chi Mei Materials | Polarizer | 100 | 25 |
Nexgen Mediatech | Branding | 150-160 | 10 |
Chi Mei EL | OLED | 10 | 12 |
Central Technology | LCD equipment | 40 | 12.22 |
Himax Technology | Driver IC | US$1.04 Billion | 18.79 |
| | Solar-cell | -- | -- |
Source: CMO. |
(by Quincy Liang)
