Toppoly Aims to Win 30% of Nokia's A-si TFT-LCD Panel Supply

Taipei, Nov. 23, 2005 (CENS)--After acquiring the mobile display systems (MDS) division of Royal Philips Electronics of Netherlands by June 2006, Taiwan's Toppoly Optoelectronics Inc. is expected to command 30% of the amorphous silicon (a-si) thin film transistor (TFT) panel supply to the leading cell-phone brand Nokia.

The Toppoly-Philips tie-up, which will create a new company temporarily named as TPO, is expected to threaten some local small- and medium-sized suppliers of panels to Nokia (such as Wintek Corp.) and other TFT-LCD panel makers are trying to join Nokia's supply chain (such as AU Optronics Corp., Innolux Display Corp. etc.)

For businesses from other international cell-phone brand, MDS currently accounts for about 10% of Motorola's a-si TFT-LCD panel supply, while Toppoly supplies to local Compal Communications Inc. (CCI), a major contract handset supplier to Motorola.

Wintek, however, now accounts for about 25% of Motorola's super twisted nematic (STN)-LCD panel supply, compared with MDS' 20%. This means will be fierce competition between Toppoly and Wintek for winning orders from Motorola, according to industry sources.

The sources analyzed that Nokia, the world's No. 1 handset brand, would be the first target for Toppoly, as Nokia has been increasing its panel procurement volume. Wintek, on the other hand, has also been actively developing its TFT panel business from only a single-color STN panel supplier to Motorola.

AUO, the No. 1 large-sized TFT-LCD panel maker in Taiwan, and Innolux Display Corp., a newcomer in TFT-LCD business, are also actively trying to win panel orders from Nokia.

According to data released by DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting, Nokia currently has three major a-si TFT panel suppliers, including Philips MDS, Sanyo Epson Imaging Devices Corp. (SEID), and Samsung SDI.

Industry sources said that one of Toppoly's goals to acquire Philips MDS is to win Nokia's panel order.

In addition to the a-si TFT-LCD panels, Toppoly is also a major supplier of low temperature poly-silicon (LTPS) TFT panels, with which Toppoly also plans to tap Nokia's supply chain of high-level handset models.

According to Toppoly, upon completion of the transaction (Philips MDS), TPO's principal shareholders will be Compal Electronics Inc. of Taiwan (with a 25.1% stake), Philips (17.5%), and UniPresident Enterprises Corp. of Taiwan (3.5%).

TPO aims to be one of the world's leading solution providers in the mobile display industry by combining Philips' and Toppoly's respective strengths and resources. The deal would result in an innovative and highly competitive entity in mobile displays, offering an extensive product and technology portfolio, Toppoly said.