Toppoly to set up a fifth-generation LTPS panel plant

Taipei, June 21, 2004 (CENS)--Toppoly Optoelectronics Corp., one of Taiwan's leading manufacturers of LCD (liquid crystal display) panels, will invest NT$80 billion to set up a fifth-generation low temperature poly silicon (LTPS) panel plant, the first of its kind in the world, at a site of the second-stage expansion construction base of the Hsinchu Science-based Industrial Park, northern Taiwan.

Toppoly, a subsidiary of Compal Electronics Inc., said it will soon kick off construction of the proposed plant, with designed annual output of 100,000 large-sized panels, and install production equipment sometime in 2006.

Chen Jui-tsung, chairman of Toppoly, predicted panel supply would be very tight in August and September because of the increased demand for notebook computers and LCD monitors. Chen is also the president of Compal, Taiwan's second largest producer of notebook computers.

Toppoly said the proposed plant will focus on 1100 x 1350mm glass substrates for production of over 15-inch panels used in TV sets and computers.

To raise funds to support construction of the new plant, Toppoly is considering launching capital-increase project and issuing global depository receipts (GDRs) in the beginning of next year. Compal Group boasted it still has cash of NT$20 billion (US$597.01 million at US$1:NT$33.5) and NT$30 billion (US$895.52 million) to meet the need of the new plant construction.

Chen pointed out the LTPS technology can match with the OLED (organic light emitting diode) technology to develop thinner, brighter and energy-saving panels. Recently Sony Corp. of Japan has been active developing the advanced OLED technology used in LTPS panels.

At present the most advanced LTPS plant is a fourth-generation one located in Singapore, which is a joint venture between Japan's Toshiba Corp. and Matsushita Electric Corp. The plant is capable of rolling out 730 x 920mm glass substrates.

With paid-in capital of NT$29.896 billion (US$892.41 million), Toppoly suffered a pretax loss of NT$3.874 billion (US$115.64 million), or NT$0.95 (US$0.02) per share, last year. The company estimated it would post revenue of NT$24.872 billion (US$742.44 million) this year. Projected loss will amount to NT$913 million (US$27.25 million), or NT$0.05 (US$0.001) per share, this year.

Toppoly has recently mapped out a plan to list on the technology category of the Taiwan Stock Exchange. If everything goes smoothly, the company will begin public trading sometime in the third quarter of this year.