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Innolux planning to bring manufacturing back home

TAIPEI, Taiwan -- Innolux Corporation (群創光電) plans to move 25-30 percent of its back-end production capacity back to Taiwan from mainland China in the future, according to the company chief on Tuesday.

Innolux Chairman Tuan Hsing-chein (段行建) shared this information while representing his company at a signing ceremony with some top polytechnic universities in Taiwan.

While addressing the audience at the ceremony, Tuan urged a "re-industrialization movement" to reshape Taiwan's thin-film transistor liquid crystal display (TFT-LCD) industry.

To initiate the new trend, Tuan said Innloux is planning to move 25-30 percent of its back-end module assembly capacity back home. He further revealed that automation and ultra-high purity process technology will be introduced.

Innolux, AUO Profitable through Q3

Judging by continued strong demand for thin-film transistor liquid crystal display (TFT-LCD) panels, Witsview recently expected Innolux and AU Optronics (AUO,友達光電) to remain profitable through the third quarter.

C.H. Liu (劉陳宏), assistant vice president of WitsView Technology Corp., pointed out that panel prices continued to rise in June, including a US$1 to US$2 increase in prices for 23.6- to 48-inch TV panels, as well as US$0.5 to US$1 for monitors and notebook PC panels.

Innolux and AUO — Taiwan's top two TFT-LCD panel makers — were profitable in the first quarter. In the second quarter they saw further improved profitability thanks mainly to the panel price hikes, Liu said.

WitsView added that global shipments of LCD TVs are expected to increase this year again, assuring profitable operations for both Innolux and AUO until at least the third quarter. As a result, the two companies' profitability in 2014 is expected to be better than last year's.

In June, a traditional off month, many customers still couldn't get needed panels. Liu attributed this to different factors, including the increasing specifications and sizes of panel products, demands for new-application panels, lackluster yield ratio at mainland panel suppliers and no capacity-expansion projects announced by Taiwanese, Korean and Japanese panel suppliers this year.

Though TV sales during the long holidays in China in early May were not as strong as originally expected, Liu said, vendors' inventory was at healthy levels.

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