Chimei Innolux to Cut Capital Spending to NT$30B. in 2012

Taipei, Jan. 4, 2012 (CENS)--Chimei Innolux Corp., the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, plans to keep 2012 capital spending to under NT$30 billion (US$1 billion) compared to about NT$50 billion (US$1.67 billion) in 2011, according to CEO Tuan Hsing-chien.

The panel maker aims to utilize its capital spending to develop new technologies, including IPS (In-Plane Switching).

Chimei Innolux claims that all its businesses, including large-sized, small- and medium-sized and touch panels, will grow clearly in 2012, especially when the touch-panel shipments are forecast to increase 40%.

Tuan stressed that Chimei Innolux's system-integration (assembly) business unit will totally spin off in 2012. The company's system assembly business once generated revenues of about NT$10 billion (US$333.3 million) per year, and now about NT$5 billion to NT$6 billion (US$166.7 million to US$200 million), with revenue expected to rise regardless in 2012.

The CEO pointed out that the maker engaged in many basic works in 2011, including development of LED-backlighting and three-dimension (3D) panel products, as well as new TV-panel sizes as 39- and 50-inch. He added that Chimei Innolux's shipments of small- and medium-sized panels will grow 20% to 30% in 2012, backed by added capacities of two of the company's 4.5th-generation (4.5G) factories.

Tuan said that the company will continue to accelerate the development of active matrix organic light-emit diode (AMOLED) panels, which are to be small-volume produced in the third quarter.