Taiwanese Hi-Tech Makers Shelving Mega Investment Projects

Faced with the global financial tsunami, major Taiwanese TFT LCD and semiconductor makers have successfully postponed or scaled down their mega investment projects, a trend which will affect the nation`s economic growth this and next year.

AU Optronics, Taiwan`s leading TFT LCD firm, for instance, has just decided to put off by one year its second 7.5 generation plant project, which was originally scheduled for equipment installation at year end and the inauguration of mass production next year. AU spokesman confirmed the decision on Oct 7, citing high market uncertainty. The plant has a projected capacity of 40,000-50,000 glass substrates a month.

Equipment suppliers revealed that Chi Mei Optoelectronics, the nation`s second largest TFT LCD maker, has also decided to suspend equipment installation for the unfinished parts of its 7.5G and 6G plants, in addition to reducing the capacity of its 6G plant to 180,000 glass substrates, down from 260,000 as originally planned. A Chi Mei spokesman, though, insisted yesterday that the two projects will proceed according to the original plan.

In addition, Innolux Display has decided to halve the capacity of its 6G plant to 60,000 glass substrates and postpone equipment installation for the unfinished capacity of 30,000 glass substrates by one year to one and half a years. In the same vein, Chunghwa Picture Tubes will cut the capacity of its 6G plant to 90,000 glass substrates, down from original 120,000, while postponing equipment installation for the unfinished part by one year.

With one 7.5G plant alone costing NT$100 billion, the total scale of the postponed investments by TFT LCD makers tops NT$200 billion in value.

Regarding DRAM (dynamic random access memory) industry, Inotera Memories and its affiliate Nan Ya Technologies have shelved their three 12 inch wafer fab projects, each costing NT$100 billion. Rexchip, an affiliate of Powerchip Semiconductor, Taiwan`s leading DRAM maker, has decided to put off the schedule of its second 12 inch wafer fab, while ProMos Technologies and Winbond may drop their 12 inch wafer fab projects altogether.

Meanwhile, Taiwan Semiconductor Manufacturing Corp (TSMC) and United Microelectronics Corp (UMC), the world`s largest and second largest contract IC makers, have also decided to put off the schedule for their new 12 inch wafer fab projects.

Source: CENS