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Innolux to reduce flat panel production

Local PC monitor maker Innolux Display Corp (群創光電) said yesterday it would slow down construction of two new production lines in China that assemble flat panel displays for PC monitors and TVs to cope with contracting demand amid economic turbulence.

That will be part of the company’s broader cost-saving plan including slowing capacity expansion to stave off the global economic slump and unresolved oversupply of liquid-crystal-display (LCD) panels. Innolux is an affiliate of the nation’s largest electronics component supplier, Hon Hai Precision Industry Co (鴻海精密).

Last month, Innolux said it would process 60,000 sheets of 1,500mm x 1,850mm motherglass at a sixth-generation (6G) plant now under construction in Taiwan, down from its original plan of 90,000 sheets.

As panel demand shrinks, Innolux plans to “slow down the construction of a LCD module and system assembling plant in Xiamen as well. But, the investment project will carry on,” Innolux chief financial officer Thomas Hsu (許嘉成) said in a filing to the Taiwan Stock Exchange.

The company did not plan to halt construction, Hsu said, dismissing the Chinese-language Apple Daily’s report yesterday. The report said that Innolux had planned to suspend the new investment in China.

Innolux said it would carefully evaluate its capital spending.
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