| Prime News | | ![]() | ![]() | Listed Firms Actively Purchasing Treasury Stocks
Taipei, Aug. 27, 2007 (CENS)--In the wake of the stock crash on July 27 triggered by the U.S. subprime housing-loan upheaval, board of directors of many Taiwanese listed firms, mostly in the IT sector in both the centralized and over-the-counter markets, have resolved to purchase treasury stocks.
Market insiders noted that purchase of treasury stocks by those IT firms is meant for the two-pronged purposes of share-price bolstering and talent retention, the latter of which as a preemptive move for the expensing of stock dividends for employees, scheduled for implementation next year.
They noted that implementation of treasury-stock program underscores confidence in the companies' revenue and profit outlook on the part of management, helping bolster the overall stock-market performance.
Statistics show that boards of directors of 16 listed firms have resolved to purchase treasury stocks so far this month, including 14 IT firms, mainly in the fields of IC design, PCB, and optical lenses, with total purchasing scale reaching 72,000,000 shares. They include AVerMedia, Kenmec, and Nagase Wahlee, and C Sun.
C Sun, a PCB maker, remarked that implementation of treasury-stock program can alleviate the impact of employee stock-dividend expensing, urging the regulator to allow listed companies to transfer treasury stocks to employees at prices lower than original purchase levels.
Industry insiders noted that requirement of employee stock-dividend expensing will impact listed ICs design houses boasting high share prices and employee stock dividends, the latter of which accounts for up to 30-40% of their total profits.
In addition to treasury-stock purchase, some IC design houses, such as Sunplus and Anpec, have carried out option-warrant program recently, capitalizing on the comparatively low stock prices now, in order to alleviate the impact of employee stock-dividend expensing and cut personnel turnover. In most cases, employees can exercise their option-warrant right only two years later.
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| | ![]() | | | Ill-Managed Credit Departments of Farmer and Fishermen Associations to be Handled Independently
Taipei, Aug. 27, 2007 (CENS)--The Executive Yuan (the Cabinet) passed the revised draft of the "Agricultural Financing Law" recently, with an addition of mechanism for exit of ill-managed credit departments of farmer and fisherman associations, allowing separation of the credit departments from farmer and fisherman associations for takeover by credit departments of other farmer and fisherman associations or national agricultural financial institutions.
Currently, problematic credit departments are bundled with their parent farmer and fisherman associations in acquisition by other associations but merger between associations turns out to be quite difficult, due to involvement of elections for representatives, board directors and supervisors, and secretary generals of those associations.
Consequently, since enactment of the "Agricultural Financial Law," over the past several years only two credit departments of farmer and fisherman associations have been taken over by other associations, one being merger of Hsinpi village association and Nanzhou village association of Pingtung county in 2005 and the other Tapu village association and Chuchi village association in March this year.
The law stipulates that the regulator can order takeover of credit departments of farmer and fisherman associations by other associations, after futile three-year assistance by the regulator, should their accumulated loss exceeds one third of their book values in the previous year or NPL (non-performing loan) ratio surpasses 15%.
According to the draft revision, farmer and fisherman associations will not be able to set up credit departments again following acquisitions of their original ones by other associations.
In 2001 and 2002, the Ministry of Finance ordered takeover of credit departments of 36 farmer and fisherman associations by banks, citing the "Law of Financial Merger," for which the Resolution Trust Fund has spent NT$50 billion to cover their financial shortfalls.
Many of those banks, though, have moved or dismantled the original outlets of those acquired credit department, due to cost consideration, and in some cases, farmers and fishermen complain that services offered by those commercial banks cannot meet their special needs.
As a result, with approval of the Council of Agriculture, 13 of the 36 farmer and fishermen associations have reinstituted their credit departments.
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| | ![]() | | | IBM Software Alliance to Attract Taiwanese Firms
Taipei, Aug. 27, 2007 (CENS)--The U.S.-based computer giant—IBM Corp. will form a global software development alliance named "Destination z" and will try to attract participation by Taiwanese firms with an aim to better develop its mainframe computer dubbed "System z."
Some world-renowned software vendors, including Novell, SAS, Information Builders, and Metavante, have expressed their strong willingness to join the alliance.
In terms of functions of the alliance members, Novel mainly provides Linux-based operating system, SAS provides statistical analysis software, Information Builders supports IBM's business intelligent total solutions, and Metavante offers financial industry-related application software.
Jung Hao, president of IBM Mainframe Software greater China, said the alliance will extend its presence to Taiwan with possible members comprising EDS and Provision Information.
Jung said more and more large-sized enterprises need relevant technologies to tackle information processing problem but they are unfamiliar with the application of mainframe computers and related software. He noted that the establishment of the alliance will not only help customers access software applications but also cement the relations between software developers. The alliance will also provide localization services to customers from specific areas.
Jung said the "Destination z" plan has been launched in the greater China region. In addition to independent software vendors and system integrators, some colleges will also join in the alliance. At present, a total of seven colleges in mainland China have announced to join in the alliance. In the Taiwan area, potential members are National Taiwan University, National Tsinghua University and National Chiao Tung University.
To lower the threshold for operating mainframe computers, IBM has announced it would set aside US$100 million to launch a five-year simplification project, calling for renovating original systems as one with graphic interface, using open-end technologies to replace the close-end mainframe computers, allowing the applications of Java-based software on the mainframe platform.
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| | ![]() | | | Master Kang Earns NT$5 B. in First Half
Taipei, Aug. 27, 2007 (CENS)--Despite the high pressure from price hikes in such raw materials as four, palm oil and packaging materials, Master Kang Holding Co., one of Taiwan's three largest food processors, scored US$145 million, or approximately NT$5 billion, in the first half of this year.
The company claimed it registered an 80% year-on-year growth in net profits in the second quarter of this year. An institutional investor predicted Master Kang would be able to challenge NT$10 billion (US$303.95 million at US$1:NT$32.9) in annual earnings this year.
Master Kang is the earliest domestic food producer with heavy links with mainland Chinese market to publicize its half-year financial statement. Such remarkable turnover made by Master Kang mirrors the strong demand of the mainland food market. It is expected that others with heavy links with mainland market will also be able to make handsome profits in the first half of this year. They are Great Wall Enterprise Co., Uni-President Enterprises Co., Taiwan Hon Chuan Enterprise Co., Ton Yi Industrial Corp., and Wei Chuan Foods Corp.
Uni-President is currently the third-large supplier of instant noodle and second-large supplier of fruit juice in the mainland market. Hon Chuan is mainland's largest supplier of beverage filling machines and packaging materials. Ton Yi is now the largest supplier of tinplates in both Taiwan and the mainland.
Taiwan's food companies investing in the mainland are looking to the rosy prospects of that lucrative food market with a huge population of 1.3 billion. As the long-term price hike in foods in the mainland won't change, Master Kang is expected to continue making sizable profits in the years to come.
Over the past few years, Master Kang has been busy with expanding production capacity in the mainland. The company believes expansion is the only way to have a strong position in the ample mainland marketplace.
By way of expanding production capacity and reducing production costs, Master Kang has expanded its presence from cities to townships, which has helped it post substantial growth in sales over the past few years.
In the first half of this year, Master Kang ranked first in the mainland market in the fields of instant noodle, instant tea and bottled water. Of this, the company had 50.4% and 45.7% shares in mainland's tea and instant noodle market, respectively.
Master Kang had US$297 million in cash at the end of the first half of this year, representing a 100% year-on-year growth from US$161 million. The company said it is actively raising the return on equity, prompting a speculation that it would dole out dividends for two times this year.
Master Kang registeredUS$1.503 billion in sales in the first half of this year, up 35.23% from the year earlier. The company saw gross profit grow 34.33% annually to reach US$491 million in the first half of this year. Net earnings reached US$145 million, or US$0.017 per share in the same period.
In the first half of this year, Master Kang saw sales of instant noodle grow the most at 38.87% year-on-year, followed by 36.4% for beverage, and 6.57% for biscuit and cake.
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| | ![]() | | | Sumitomo Chemical Buys Stake in Wafer Works' Plant in China
Taipei, Aug. 27, 2007 (CENS)--Japanese silicon-wafer supplier Sumitomo Chemical Co., Ltd. recently acquired a 3% stake in a solar-cell crystal grower Solargiga, a joint venture between Wafer Works Corp. of Taiwan and a mainland Chinese solar-energy manufacturer.
In a news release the Japanese company stated it acquired the ownership for 300 million yen (US$2.5 million at US$1:116 yen) and the privilege to access to and sell Solargiga's products in China and Japan.
Taiwanese industry watchers pointed out that the acquisition will help Sumitomo complete its deployment in the solar-energy industry in the short time and assist Solargiga in vertical integration with Sumitomo's distribution network.
The acquisition makes Solargiga the first solar-energy manufacturer jointly owned by Taiwanese, mainland Chinese and Japanese investors. Industry watchers pointed out that the cooperation among the three sides suggests global solar-energy manufacturing pivot is moving to Asia from Europe and the United States.
Solargiga is the first solar-energy manufacturer that a Taiwanese solar-energy maker received government approval to invest on the mainland. Wafer Works holds 30% of the joint venture and its management authority through affiliate Jing Ji Electron Material Co., Ltd. The venture is currently one of the mainland's top two growers of silicon crystals for solar cells.
Wafer Works, founded in 1997, is Taiwan's No.3 crystal-wafer maker, trailing only Green Energy Technology Inc. and Sino-American Silicon Products, Inc.
With the mainland venture, Wafer Works will expand its crystal-growing capacity to 100 megawatts of solar cells by the end of this year from current 20 megawatts and 200 megawatts next year.
Some mainland Chinese press media recently reported that Solargiga will likely make initial public offering (IPO) in the mainland in September through underwriter BNP Paribas. The media estimated the company's underwriting profit to be about US$300 million, posting potential profit of at least US$10 per share to Wafer Works.
Wafer Works' core business is also shining. The company's earnings for the first half of the year are estimated to surge by at least 2.5 folds year-on-year and its revenue for July, at NT$448 million (US$13.7 million at US$1:NT$33), hit a new high for the 17th consecutive month.
Wafer Works' semiconductor materials lineup include SOI, gallium arsenide, silicon germanium, direct bonding wafers, epitaxial wafers, and sapphire substrates.
Industry watchers estimated Solargiga to contribute considerable size of earnings to Wafer Works considering its much larger manufacturing size than Wafer Works'.
Sumitomo is a globally leading supplier of poly-silicon wafers, its affiliate Sumco is now the world's biggest supplier of silicon wafers. Sumitomo is also a major shareholder of U.S. solar-energy maker Hemlock and recently announced plans to invest in European poly-silicon supplier REC.
Industry watchers pointed out that eco-sensitive energy sources such as solar power have recently emerged as hot subjects driven by climate change caused by green-house gas emissions. According to market-research organization Photonics Industrial Development Association (PIDA), Taiwan's revenue from solar-cell and module manufacturing topped NT$10 billion (US$303 million at US$1:NT$33) last year and is projected to exceed NT$50 billion (US$1.5 billion) this year.
PIDA's market researchers point out that solar cell is the segment that has posted 40% growth for four consecutive years worldwide. They note that Taiwan's solar-cell industry has set up a highly self-sufficient supply chain capable of supplying everything but poly-silicon devices.
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| | ![]() | | | Qisda, AUO t Form Closer Partnership: BenQ's Lee
Taipei, Aug. 27, 2007 (CENS)--Qisda Corp. and AU Optronics Corp. (AUO) will draw their strategic partnership closer, with AUO increasing contracts to Qisda, according to BenQ Corp. Chairman K.Y. Lee, who concurrently take helm at the two companies.
Qisda is a contract-manufacturing operation recently spilt from BenQ. BenQ announced the plan to separate contract-manufacturing operation from brand-name operation in April this year as part of its plan to improve finance, which is marked by BenQ's net loss of NT$10.78 per share last year mostly because of huge loss from its European operation BenQ Mobile. The spin-off will take effect on September 1 this year.
Hui Hsiung, AUO's executive vice president and assigned Qisda president, pointed out that AUO will increasingly outsource liquid-crystal module (LCM) productions to Qisda and the contracts are expected to bring Qisda lucrative results. AUO is among the world's top three suppliers of large-size LCDs.
Beginning next quarter, AUO's LCM contracts will go to Qisda's factory in Czech Republic. It has outsourced the manufacturing to Qisda's mainland Chinese factory since the second quarter this year.
Qisda's Czech factory is currently staffed with 400 workers to make LCD monitors. The company previously rent a factory near the monitor factory to produce LCD TVs. It has moved the TV production to the monitor factory since the second quarter in hope of cutting costs. The Czech factory's output has increased sharply thanks to strong demands for monitors and TVs. It is boosting capacity in preparation for LCM orders from AUO.
Hsiung said in this partnership Qisda plays a "ball catcher" role, referring to its previous receiving of LCM and substrate glass orders from AUO. He went on that AUO will lower investments in the labor-intensive LCM manufacturing and center its investments on front-end equipment laden with technology and capital. He said that AUO's outsourcing LCM production will not exceed 10% of its output.
Hsiung added Qisda will sort its operation into six business units—liquid-crystal display (LCD), LCD TV, overhead projector, multipurpose business machines, mobile communications and auto electronics.
The company saw its handset business' gross margin dip to 5.8% in the second quarter from the first quarter's 9.1% as a result of remained inventory pileup of mobile phones. In the second quarter, the company's handset business lost NT$1.9 billion (US$57.8 million at US$1:NT$33), 77% more than the loss in a quarter earlier.
Nevertheless, the company still reported earnings for the second quarter after selling 10 million AUO shares. To further improve financial structure, the company recently decided to sell 12 million Darfon Electronics Corp. shares, which will inject NT$1.3 billion (US$39 million) into it.
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| | ![]() | | | SDI Aims for World's No. 1 Lead-frame Maker With 35%-40% Share
Taipei, Aug. 27, 2007 (CENS)--SDI Corp. of Taiwan recently claimed that it has commanded a 25% share in the global power lead frame market, making it one of the top-two players in the sector, but is actively trying to raise the share to 35% to 40% for further consolidating its globally leading position.
Chen Jao-Shyong, chairman and president of SDI, is very confident about his firm's eventual increase in global share as the cost of Japanese counterparts is relative higher while a major French rival is racked by financial woes. SDI's most competitive rival is a German company, Chen said, but SDI is expected to pull ahead thanks to better integrated competitiveness.
The SDI Group registered revenue of NT$8.3 billion (US$251.5 million at US$1: NT$33) in 2006, and some institutional investors estimated that the figure is expected to grow to about NT$11 billion (US$333.33 million) this year. As two of SDI's plants in mainland are expected to soon complete capacity-expansion projects, Chen claimed that the group annual revenue is expected to challenge NT$15 billion to NT$16 billion (US$454.54 million to US$484.84 million).
According to Chen, SDI has been steadily winning increasing orders from major customers for its lead-frame products, including STMicroelectronics, International Rectifier (IR), Infineon, etc. in recent years, while it is in intensive business talks with Fairchild, NXP Semiconductors, etc.
The chairman and president explained that major global integrated device manufacturers (IDMs) stress the quality and delivery most so they used to procure lead frames from mainly suppliers in Japan and Europe. After SDI tapped into some global brands' supply chains, Chen said, more and more orders have been flowing into the Taiwan company.
SDI has been very proud of its prevision level (with a minor bias of only 0.1mm) of the in-house developed precision dies, the techniques in which are also the firm's core compettiiveness.
ST has cited SDI as the best supplier for three straight years, Chen said, because the big international brand deems the Taiwan company has good quality and strong cost competitiveness. Many of SDI's lead-frame models, he added proudly, could be shipped directly into ST's production plant without check by ST.
Currently, IDM's orders account for about 70% of SDI's total lead-frame revenue, while the rest 30% is generated from original equipment manufacturing (OEM) business.
Chen said that currently all global lead-frame makers consume about 3,500 tons of copper, of which SDI accounts for about 900 tons. SDI aims to achieve a goal of using about 1,500 tons of cooper per month, or a global share of 35% to 40%, to widen its lead from major rivals.
SDI is scheduled to soon inaugurate an expanded R&D center in Taiwan and increase the R&D staff number from about 80 people now to 120 in the near future.
In SDI's other core business, stationery, Chen said that his company has been aggressively trying to develop higher-level, multi-functional, and high value-added products. Some examples include multi-function white correction tape (with built-in glue stick), power-saving staplers, etc.
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| | ![]() | | | Pratt and Whitney Inks Technical Support Pact With AIDC of Taiwan
Taipei, Aug. 27, 2007 (CENS)--Pratt and Whitney, a major aircraft engine company of the United States, recently signed a technical support agreement with Taiwan's Aerospace Industrial Development Corp. (AIDC), the largest aircraft manufacturer on the island.
William Begert, vice president of international programs and business development of Pratt & Whitney's military engines unit, and Feng Shih-kuan, AIDC chairman, represented the two firms at the signing.
With the technical cooperation with Pratt and Whitney, according to Feng, AIDC is expected to have US$2 million to US$5 million worth of aircraft-engine repair and maintenance business opportunities in the initial stage and the value is expected to reach US$10 million in next three years. He also added that AIDC would represent Taiwan to win more military aircraft repair and maintenance businesses from other nations.
Industry sources said that AIDC is also expected to win opportunities from the American partner to locally produce some parts and components for the F16 jet fighters, and an agreement has been reached between the two parties.
The F16 is currently the major fighter of the ROC Air Force and all the engines adopted by such jet fighters in-service in Taiwan are F100-PW-220 supplied by Pratt and Whitney. After over 10 years of operation, the demands for repair and maintenance are gradually increasing.
After completed a major task to locally produce about 130 indigenous defense fighter (IDF) jet fighters for ROC Air Force many years ago, AIDC has been actively trying to expand its business scopes into aircraft engine manufacturing.
From 2006, Feng said, AIDC began leading a group of its satellite plants to seek business orders in nations such as Russia and mainland China and the aircraft maker is in talks with various aerospace companies in China for purchasing more cost-competitive materials to cut its own costs.
The chairman said that currently AIDC releases over NT$ 3 billion (US$90.9 million at US$1: NT$33) worth of business opportunities to local sub-contractors and private companies, including about NT$1 billion (US$30.3 million) worth of contract manufacturing and over NT$2 billion (US$60.6 million) worth of parts and material procurements.
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| | ![]() | | | Taiwan to Open Another Door for Unsecured Personal Loans
Taipei, Aug. 27, 2007 (CENS)--The financing company law drafted by the Cabinet-level Financial Supervisory Commission (FSC) allows individuals to borrow money from financing firms without collaterals, and the ceiling interest rate for such loans is set at 20% per annum.
After the law becomes effective, financing firms have to review the creditworthiness of each borrower whenever he/she intends to borrow money, and require the borrower to come personally to finish the necessary paperwork regardless of the size of loan. The strict requirement for the loan procedure is to minimize risks for default as happened to many cash- and credit-card loans.
The draft law stipulates that the application for the establishment of a new financial company should be screened by related authorities and should not be set up until after it is approved. Besides, the ceiling interest rates on loans offered by such firms should not exceed 20% to individuals and 30% to corporations or institutions.
The law does not specify the capitalization of an eligible financial firm. It seems to allow FSC to decide later on. If the threshold of the capitalization is set at NT$2 billion (US$60.6 million at US$1 = NT$33), then there are more than 100 firms qualified to engage in such loan business.
FSC is believed to strictly monitor the operations of qualified financing firms on the island, although it seems to be inclined to open wider the door to such firms so as to attract more entrants, both domestic and foreign, to operate here.
The drafting of the financing company law is aimed at providing more loan channels to both enterprises and individuals, as well as legalizing such large financing firm as GE Capital to offer loan services here. The draft law just passed the review by the Executive Yuan (the Cabinet) late last week and will soon be submitted to the Legislative Yuan (the Congress) for approval.
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| | ![]() | | | Cathay United to See Branches in Vietnam Expand to 17 at Yearend
Taipei, Aug. 27, 2007 (CENS)--Cathay United Bank, one of Taiwan's leading private banks, is expected to see the number of its branches in Vietnam expand to 17 at the end of this year, keeping its title as the country's largest foreign bank.
Currently Cathay United has a branch and two representative offices in Vietnam and its joint-venture bank there has about 12 branches, so together Cathay United has 15 outlets in the country. The bank's two representative offices in Vietnam are reportedly to be upgraded to become branches soon. Besides, the bank is going to establish two new branches in the country before the yearend, after which the number of the bank's branches there will grow to 17.
A senior manager at Cathay United said that Vietnamese government adopts quite strict policy on the destinations chosen by foreign banks for the setup of branches. The government there usually issues licenses for foreign banks to run branches in the two large cities--Ho Chi Minh City and Hanoi. So, the first footholds of most foreign banks in Vietnam are located in the said two cities.
Taiwanese banks now having branches or representative offices in Ho Chi Minh City and Hanoi include ChinFon Commercial Bank, Chinatrust Commercial Bank, Far Eastern International Bank, Mega International Commercial Bank, Far Eastern International Bank, Union Bank of Taiwan, Bank SinoPac, First Commercial Bank, Taishin International Bank, Land Bank of Taiwan, Shanghai Commercial & Savings Bank, and Hua Nan Commercial Bank. Their next destination is believed to be Dong Nai Province.
Unlike other Taiwanese banks, Cathay United has jointly established a bank in Vietnam with a local counterpart in addition to its own subsidiary there. So, the joint venture is allowed to set up branches not only in Ho Chi Minh City and Hanoi, but also in many other cities including Danang, Haiphong, Can Tho, Dong Nai, etc.
Seeing more and more Taiwanese enterprises move their operations to Vietnam, most Taiwanese banks can hardly wait to establish footholds there. It is reported that currently more than 10 Taiwanese banks are waiting for approval to operate in Vietnam.
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| | ![]() | | | AmTRAN Scored Record Net Profits in Q2
Taipei, August 27, 2007 (CENS)-- AmTRAN Technology Co., Ltd. a Taiwan-based supplier of flat TVs, saw its net profits for the second quarter of this year break the NT$400 million mark, up 29% from a quarter earlier and hitting a new high in single quarters, according to company sources.
With its own brand Vizio becoming the most popular brand of liquid crystal display (LCD) TVs in the North American market, AmTRAN reported net earnings of NT$722 million, or NT$1.7 per share, for the first half of this year. The figure is expected to keep moving up in the third quarter due to high growth potential in its sales of the products.
In fact, AmTRAN has made a good progress in distribution channels for its Vizio-branded LCD TVs, first adding Circuit City and Sears, both local specialized channel distributors of electronic products in the U.S., in addition to existing Costco, Sam's Club and Wal-mart. This has helped to expand its distribution channels.
Besides, sticking to a promotion strategy focused on product value, AmTRAN has posted shipment of 990,000 LCD TVs for the first half of the year, equaling the figure posted for entire last year, and therefore driving up its sales and profits sharply. The company is likely to challenge net earnings of more than NT$5 per share for entire the year.
The company noted with a booming season approaching, it is optimistic to challenge shipment of 300,000 LCD TVs per month in the third quarter, with annual projection of 2.6 million units for this year, and to see annual revenue to beat a record high of NT$60 billion in the year. Also, the company projects its annual revenue for next year to further grow up to between NT$80 to NT$100 billion.
According to statistics compiled by a market survey institute, DispalySearch, Vizio ranked No.5 in sales in the first quarter of 2006 in the North American market, and then rose to No.3 one year latter, only trailing Korea's Samsung and Japan's Sony.
However, Vizio has surprisingly and rapidly unseated Samsung to first become No.1 LCD brand in the second quarter of 2007 in the market, according to the latest reports issued by DisplaySearch and iSupply.
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| | ![]() | | | LCD TVs to Become Mainstream Commercial Models in 2009
Taipei, August 27, 2007 (CENS)--With sales volume in the global market for commercial displays to reach 3.34 million units in 2010, liquid crystal display (LCD) TVs are expected to become mainstream over plasma TVs in the market in 2009, according to Taiwan's government-funded Market Intelligence Center (MIC).
LCD TVs has commanded a share of nearly 40% in the global market for TVs. Nevertheless, with LCD TVs becoming prevailing in households, a growth in sales of such models is expected to slow down gradually in the market. Thus, makers in the sector are eager to develop new lucrative applications of large-sized displays.
Analysts in the MIC noted that plagued with excessive supply of large-sized displays, the world's top five suppliers of this kind in Taiwan, Japan and Korea, who are also active to explore new markets, have targeted commercial displays as their new business opportunity.
With large outdoor advertisings nowadays emphasizing use of audio and video signals in digital communication, sales of 30-inch and above commercial displays has grown rapidly to 980,000 units in 2007, and is expected to further edge up to 1.49 million units in 2008, 2.25 million units in 2009, and 3.34 million units in 2010, according to the MIC.
In a further analysis of growth and change between plasma TVs and LCD TVs, MIC indicated that, sales of plasma models in the consumer market has ebbed due to popularity of LCD models, but plasma TVs are still the mainstream models in the market for commercial displays. Global shipment of plasma TVs is estimated at 732,000 units for 2007, up 45% from a year earlier, and will grow by 31% to 958,000 units next year.
However, with 7-gernationa and above production lines for thin-film transistor (TFT) panels being activated, LCD panels have started to be adopted in commercial displays. Shipment of LCD TVs is estimated at 248,000 units this year, for a growth of 61% from a year earlier, in the global market for commercial displays, and will increase by 115% to 532,000 units in 2008 and double in 2009, when shipment of LCD TVs will exceed that of plasma TVs in the market for the first time.
Besides, MIC commented that commercial displays are mainly used by businesses, which are inclined to ask for more customized design of products, flexibility, and integrated services than consumers. However, such situation also lends itself ideally to allow Taiwanese makers of LCD TVs to enjoy high gross profits and avoid cut-throat competition in price.
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