Overview of LCD panel Market in the second quarter of 2005

Second quarter plane display industry changes, the macro environment monitor still is mainly affected by the upstream panel industry changes. Since July last year, the global LCD panel prices fell sharply finally stabilized, and a slight rebound in June. This is a turning point to improve the profitability of the panel manufacturers, some manufacturers began to increase investment to expand production capacity, a number of new LCD panel plant is about to be born. At the same time, many local governments in the preparation of the 11th Five-Year plan will have the photovoltaic industry as a key industry layout. Panel manufacturing is bound to trigger a new round of investment boom. CMO 140 billion expanding global panel market share will exceed 20% CMO this year and next will spend NT $140 billion to expand plant, including second five generation and 7.5 generation factory factory factory, three 5.5 generation, greatly enhance the market share in the global panel, general manager He Zhao Yang and say: "this year TV panel shipments target of 4 million 500 thousand, will take over 20% of the global market." Required to pay money to expand the factory, CMO financial director Chen Yansong said that the next two years will be the capital expenditure of about NT $70 billion yuan last year, two times for the CMO loan, the funds more than NT $100 billion. In addition, the CMO intends to apply for private placement and issue of global Depositary Receipts (GDR), is expected to raise more than 45 billion yuan to meet the expansion of the plant's capital needs. AUO, CMO to expand production capacity to create a new map of competitive advantage in AUO, third to five generation line in the fourth quarter of this year after the operation, in the case of full capacity, the company's five generation line of the total monthly production capacity will be increased to 160 thousand. By the end of the year, the total production capacity of the five generation of Chi Mei line, will be amplified in one fell swoop to 235 thousand. After all the previous five generation production line experience, at present since the beginning of the vote, about half a year can be entered full production, the production technology has been very stable. As for the five generation plant yield continued to enhance the color crystal, the production capacity of the fourth quarter of this year will also be pulled up to the full load of 120 thousand. AUO and Chi Mei for its new production capacity out of the schedule, that will be in accordance with the original plan. Xiong Hui said, the six generation of AUO line is still in accordance with the amount of labor out of production capacity, current investment amount has reached 30 thousand, the future is expected to increase the dosage of 10 thousand monthly tablets tablets, and the yield, about 6, about 7 into. Xu Chunhua also said that the 5.5 generation of Chi Chi plant capacity is not out of the door, such as not open, in June is expected to reach the amount of investment in the film up to 20 thousand, the yield has reached more than 7. On the other hand, AUO in this season in Taiwan has become the first company to start panel factory profit, released May consolidated revenue of NT $15 billion 380 million, an increase of 3.1% compared to April, May, the large size panel shipments of 2 million 374 thousand, an increase of 3.4% compared to April, small and medium size panel shipments to 3 million 965 thousand, reduced by 5.3% compared to April. Caipin: this year the cost is reduced by 20% panel market variables HannStar company said that the annual cost reduction target to 20% range, including the decline, from the cost of materials the five generation plant yield improvement and process management etc. Color crystal first quarter five generation plant material cost forecast in the second quarter fell 8%, lower and lower 8% to 10%; three generation factory of the first quarter cost is down about 4%. Caijing general manager Zhou Dinghui said, the current color crystal and upstream material manufacturers talk about the cost of 5 to $7 per piece fell 17 inches with a 19 inch panel, 15 inch panel due to the upstream material prices fall, did not talk about the price of space. Zhou Dinghui said the rate is very important to reduce the production cost of good product, every week he and deputy general manager Zhou Zhihao (responsible for color crystal five generation plant utilization matters) discussion yield, the yield increased by 1 percentage points, the cost difference of 2 to more than $3. In the five generation plant yield gradually increased, color crystal panel production capacity will rise month after month, outlook for the second quarter of trading week, Dinghui said, the second quarter panel shipments will have more than 20% growth over the first quarter, the average selling price (ASP) is expected to have about 15% higher than the first quarter space. Asahi Glass panel factory hopes to break Corelle monopoly current global stable and large supply of six generation glass substrate manufacturers only one, is the world's largest supplier of substrate - Corelle (Corning), with second of the world's largest glass substrate plant Asahi second furnaces opened, and began to supply large size glass, should help guide the large size glass prices, reduce the production cost of Taiwan panel factory. Corelle share of over 50% in the world in the six generation glass substrate, the market share is as high as seven, 80%, at present all of Taiwan's six generation and the five generation. The five factory, and Corelle signed a long-term supply contract. The CPT, for example, has always been Asahi in Taiwan's largest customer, but CPT has also recently signed with Corelle. The six generation of a piece of glass about 30 thousand to 40 thousand yen, the five generation of glass as long as more than 10 thousand yen, the six generation glass price is three times more than the five generation, but the six generation panel plant production efficiency, compared with the five generation panel plant, but far less than three times. Asahi is a deep technology and experience in glass factory, Taiwan Asahi Glass panel industry wants to catch up, a large and steady supply of six generation glass, the six generation glass substrate current high price decline, reduce the cost of production panel factory, breaking a dominance of Corelle. AUO, CMO think about a merger to consensual two TFT-LCD panel factory AUO, CMO panel of inter plant merger, said it must be consensual. Youdadong