CTX Opto-Electronics to Launch Mainland Production in Q3 of 2006

Taipei, Nov. 22, 2005 (CENS)--Following the footsteps of Chi Mei Optoelectronics Corp., CTX Opto-Electronics Corp., a leading manufacturer of backlight boards, has resolved to launch production in mainland China by setting up a plant in Ningbo of Zhejiang Province.

With the approval from the Investment Commission under the Ministry of Economic Affairs, CTX will invest in US$18 million to set up the Ningbo plant. The first-stage construction of the plant is slated for completion in the third quarter of next year. The plant is designed to have a monthly production capacity of 500,000 large-sized backlight modules.

Of domestic top-five manufacturers of TFT-LCD (thin film transistor-liquid crystal display) panels, Chi Mei boasts high integration of production but still has to rely on the supply of backlight modules from CTX.

After the first-stage construction of the CTX Ningbo plant is completed in the third quarter of next year, the second-stage construction will kick off. It is expected the plant will be able to boost monthly production capacity by 500,000 backlight modules in the second quarter of 2007. At that time, the plant will see a monthly production capacity reach one million units modules.

At present, CTX is Taiwan's largest manufacturer of backlight modules with monthly sales amounting to NT$3.2 billion (US$95.23 million at US$1:NT$33.6).

In addition to two plants in Taiwan, the company has also set up production facilities in mainland's Suzhou, Songjiang and Nanjing. Besides Taiwan's five-largest flat-panel manufacturers, CTX's customers also include those from South Korea, Japan, and mainland China.