Asahi Glass, the world's largest maker of glass substrates for TFT-LCD computer screens, finished construction of a US$285 million (NT$10 billion) factory in Yunlin County, Taiwan yesterday. Production will begin at the plant later this quarter.
The new investment comes as welcome news to Taiwan, which is reeling under plant closures and a mass migration of high- tech firms to China. Asahi officials said the factory was needed in Taiwan due to its rapidly expanding LCD industry.
"The facility will eventually employ some 400 skilled workers including chemical and electrical engineers, boosting high-tech employment in southern Taiwan," said Shih Yen-Shiang (施顏祥), director general of Taiwan's Industrial Development Bureau (IDB), under the Ministry of Economic Affairs.
"Suppliers in central and southern Taiwan are also benefiting as Asahi begins outsourcing locally."
The announcement follows last week's announcement that the IDB had secured some 13 upstream technology investment projects in 2001 worth a total of US$2.5 billion. The investments in the flat panel display, semiconductor and fiber optics industries, were made by companies including Sony, Corning Inc, Toshiba Corp and CMC Magnetics Co (中環).
An Asahi representative said the factory would produce TFT- LCD glass substrates and ITO glass, with phase one production beginning in the fourth quarter of this year. By 2005, the plant will have annual capacity of 2.3 million square meters of glass. Specially made glass substrates are a key component in the manufacture of TFT-LCD panels used in computer monitors, PDAs, mobile phones and other devices.
"This investment project indicates the evolution of strong collaboration between Taiwan and Japan -- from OEM to technology cooperation and R&D -- strengthening the local technology supply chain from upstream to downstream," Shih said.
The investment also confirms Taiwan's move toward higher-end upstream production, and is seen as a much needed confidence boost to the local technology industry, he added.
Asahi forecasts that TFT-LCD displays will continue to gain ground over CRT displays, with average growth of 30 percent over the next 5 years. By 2004, Asahi expects to provide up to 90 percent of the glass substrate needed to the LCD market.
The ministry recently announced that the production value of the Taiwan LCD industry would hit US$4.9 billion this year.
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