Mon, Nov 10, 2003 - Page 10 News List

Shortages could kill flat-panel boom

KEY COMPONENTS Companies such as AU Optronics and Chi Mei Optoelectronics are struggling to get enough color filters and substrate glass to meet manufacturing needs

By Lisa Wang  /  STAFF REPORTER

By any account, the deal is to maintain the stable color filter supply that AU currently enjoys, Chen added.

But ABN-AMRO analyst Wu said the deal was good for BenQ because the company spend merely NT$500 million to keep the supply steady for AU.

Cando currently shipped two-thirds of its color filters used in 17-inch flat panels to AU and the percentage is likely to rise after the share purchase, Wu predicted.

Two other flat-panel makers have pursued a similar strategy to to ensure stable supplies, said Wu. HanStar and Quanta Display invested in filter makers Nan Shih Enterprise Co (南鑫) and Allied Material Technology Corp (展茂).

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