Taipei, Aug. 14, 2008 (CENS)--Both AU Optronics Corp. (AUO), the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, and LG Display (formerly LG.Philips LCD Co., Ltd.) of South Korea, recently kicked off installing equipment at their new eight-generation (8G) production lines, which are expected to start production in the first half of 2009, though most major global panel suppliers have successively announced production cuts in the third quarter.

The top-two TFT-LCD makers in Taiwan, AUO and Chi Mei Optoelectronics Corp. (CMO), have announced that they may slow expanding new production capacities because the overall industry is saturated with excessive new capacities. LGD`s new 6G investment project might be delayed to the third quarter of 2009.

Major global panel suppliers began deploying their 8G plants in 2007 and most entered into equipment-installation stage in the second half of this year, including the second 8G of S-LCD Corp. (a 50-50 joint venture between Samsung Electronics of South Korea and Sony of Japan).

LGD held a ceremony to celebrate the equipment installation at its 8.5G line, which was designed for monthly capacity of 80,300 substrates, on August 8. The new line is scheduled to produce substrates for cutting into mainly 32-, 47-, 55-inch etc. TV panels and the new capacity, which is expected to join in the first quarter of 2009, is expected to continue to maintain LGD`s global share of about 20%.

AUO also started installing equipment at its new 8.5G production line at the L7B facility in Central Taiwan Science Park (CTSP), which includes both a 7.5G and 8.5G lines with monthly capacity of 60,000 and 40,000 substrates, respectively.

CMO is scheduled to install equipment at its 8.5G plant in November and the new line`s initial monthly capacity is about 30,000 substrates.

The four new 8G- and beyond lines have led to a worry of excessive supply in 2009, driving AUO and CMO to announce plans to delay adding new capacity and cut capital spending in next year.

LGD previous announced to set up another new 6G plant for producing monitor and notebook PC panels. The new plant was originally planned to install equipment by the end of the year and kick off production in the second quarter of 2009 with initial monthly capacity of about 60,000 substrates. All signs showed that, according to industry sources, the equipment-installation date might be delayed to the second quarter of next year.

(by Quincy Liang)