Local TFT-LCD makers to suffer short supply of 5th-generation color filters

Taipei, Aug. 18, 2003 (CENS)--Local producers of TFT-LCD (thin film transistor-liquid crystal display) panels based on manufacturing process of the fifth generation would suffer short global supply of color filters of the corresponding sizes beginning in the fourth quarter of the year.

Color filters are a key component of TFT-LCD panels. According to market surveys by DisplaySearch, there will be seven TFT-LCD production lines based on fifth-generation manufacturing equipment/process coming into volume production next quarter around the world, with aggregate production capacity of using 325,000 TFT-LCD glass substrates (for cutting into panels of varying sizes) a month.

The seven production lines are established by the following five companies: LG. Philips LCD and Samsung of South Korea and the three local TFT-LCD makers AU Optronics Corp., Chi Mei Optoelectronics Corp., and Quanta Display Inc., DisplaySearch indicated.

On the other hand, seven production lines of color filters of the corresponding glass size, also based on fifth-generation manufacturing equipment/process, will be in commercial operation next quarter in the world, DisplaySearch noted. The production lines of color filters are set up by LG. Philips LCD, Samsung, Sumitomo, Toppan Printing, AU Optronics, and Chi Mei Optoelectronics.

However, the seven production lines of color filters will have total capacity of 315,000 color filter glass substrates, resulting in a shortfall of 10,000 substrates to meet the corresponding capacity of TFT-LCD glass substrates.

The domestic production of fifth-generation color-filters glass substrates will particularly lag behind that of the corresponding TFT-LCD panels, DisplaySearch pointed out. Therefore, the three local makers of fifth-generation TFT-LCD panels will suffer larger short supply of corresponding color filter glass substrates than the South Korean counterparts.

The production of fifth-generation color filter glass substrates involves relatively difficult manufacturing technology due to the large size of glass substrates and therefore has higher defect rates than that of smaller color filter glass substrates, local TFT-LCD producers indicated. For production based on the fifth-generation manufacturing process/equipment, the volume of color filter glass substrates is 1.2 times that of TFT-LCD glass substrates on average, they pointed out.

The global short supply of fifth-generation color filter glass substrates will last until the second quarter of next year, according to DisplaySearch.