AU Optronics, the world's fourth-biggest flat-panel display maker, plans to boost production of LCD-TV panels to 5 percent of sales, compared with a target of 1.5 percent set earlier this year. The company is increasing component production to help reduce shortages of color filters in the fourth quarter, Lu said.
"We are trying to pick up production of LCD-TV panels this year," he said. Shortages of color filters, which allow LCDs to display a full spectrum of hues, will persist for about six months, according to Lu. AU Optronics shares have more than doubled in the past six months.
Glass Ceiling Tokyo-based Asahi Glass Co said in June it will spend ?13 billion (US$116.8 million) to boost production capacity in its plants in Taiwan and ?5 billion in Japan.
South Korean companies were the first outside Japan to follow Sharp into the flat-screen TV business. Taiwanese companies such as AU Optronics and Chi Mei, which entered this year, are trying to catch up by raising money to expand production.
Taiwan's five makers account for about half the US$6 billion spent on global flat-panel expansion this year, followed by Japan and Korea, according to DisplaySearch and other analysts.
"Taiwan has raised about US$2.8 billion in capital this year," said Frank Lee, an analyst with Deutsche Securities Asia. "Every time we expected industry consolidation, the market turns around."
Chi Mei Optoelectronics Corp (
RSS