Sumitomo to set up 2.5G in-house color-filter line at PVI's TFT-LCD panel plant

Taipei, March 3, 2005 (CENS)--Taiwan Prime View International Co, Ltd. (PVI), a maker of small- and middle-sized thin film transistor-liquid crystal display (TFT-LCD) panels, has signed an agreement with Sumitomo Group of Japan to jointly set up an in-house 2.5th-generaiton color-filter line at PVI's panel facility the Hsinchu Science-based Industrial Park (HSIP), northern Taiwan.

By controlling the supply source of color filters, a key component for TFT-LCD panels, PVI claimed that its shipment volume is expected to grow by 30% this year.

PVI said that the scheduled color-filter line would be the world's first in-house 2.5th-generation color filter line, in which Sumitomo's subsidiary in Taiwan would invest about NT$1.5 billion (US$47.92 million at US$1: NT$31.3). The new color-filter line is scheduled to begin mass production in the fourth quarter this year, with a monthly capacity of 50,000 color filters.

PVI vice chairman Liu Szu-cheng said that PVI used to be the largest customer of Sumitomo's color-filter products for a long time but became the second-largest one after the Japanese company cooperated with Samsung of South Korea to set up a fifth-generation color filter plant.

According to Liu, Sumitomo decided to invest in the in-house color filter line as PVI's parent YFY Group has maintained long-term cooperation ties with Sumitomo and because PVI owns strong development potential in its business.

Under the cooperation project, according to Liu, technologies and equipment will be provided by Sumitomo, and land preparation and plant building handled by PVI, and capital funds contributed by Sumitomo's Taiwanese subsidiary.

Liu pointed out that PVI has to wait about three months to get supply color filters ordered from Sumitomo before, and the new color-filter line is expected to cut about half of the delivery period in the future and reduce overall costs by 15%.

Liu also claimed that the in-house color filter supply is expected help PVI achieve a shipment growth goal of 30% for this year a monthly capacity of 90,000 to 100,000 panels more easily.