Wintek acquires a third-generation TFT-LCD plant from HannStar

This article was published by the Taiwan Headlines on September 15, 2006. It reports that Taiwan's Wintek Corporation recently budgeted NT$6.13 billion (US$186.89 million) to procure a third-generation TFT-LCD (thin-film-transistor liquid-crystal-display) panel plant from HannStar Display Co.

Wintek is currently Taiwan's leading manufacturer of medium- and small-sized STN-LCD (super-twisted-nematic LCD) panels. With the plant procurement, the company will be able to better meet the demands of, and hence tighten relations with, the world's top-three cellphone manucfacturers - Nokia, Samsung and Motorola.

Wintek was the major supplier of black/white panels that are used in the "iPod" digital music players for U.S.-based Apple Computer Inc. However, Wintek lost such orders to Japan's Sharp after Apple began offering color iPods. Nonetheless, Wintek's procurement of the third-generation plant from HannStar may bring back the orders from Apple.

Meanwhile, by selling the third-generation plant, HannStar will get a fresh infusion of capital. The company recently announced that it will invest in a 7.5th-generation TFT-LCD plant in 2007. The proposed 7.5-generation plant will have an initial output of 30,000 units of glass substrates per month.

HannStar currently runs two third-generation TFT-LCD plants in Taiwan. One of these plants is contracted by Japan's Casio, while the other is deeply in the red due to over-production.