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Chimei Materials Technology to start production at China factory

2016-03-14

Polarizer maker Chimei Materials Technology is investing a total of US$298 million to set up a factory in Kunshan, eastern China, with construction to be completed in July 2016, trail production to begin in the fourth quarter, and volume production in January 2017, according to the company.

The factory will house two front-end production lines and a back-end line, with equipment for the first front-end line and the back-end one to be installed in the second half of 2016, Chimei said. Trail production at the second front-end line will begin half a year after volume production at the first is running smoothly, Chimei noted.

While the first front-end line, and Chimei's four existing ones in Taiwan, are set up to produce 1.5m wide polarizers, the second front-end line at the factory is likely to output 2m polarizers, Chimei indicated. 1.5m polarizers can be used in LCD TV panels up to 65-inch, and phasing in 2m models is in line with the market trend toward larger TVs, Chimei explained.

A front-end production line, if capacity is fully occupied, can generate revenues of NT$200-300 million (US$6.06-9.09 million) a month, Chimei said. The factory in Kunshan is targeted for orders from China-based TFT-LCD panel makers, including BOE Technology, China Star Optoelectronics Technology and Tianma Micro-electronics, Chimei indicated.

Chimei posted consolidated revenues of NT$12.747 billion, gross margin of 14.03%, net profit of NT$1.049 billion and net EPS of NT$2.03 for 2015 and will distribute a cash dividend per share of NT$0.50.

Rebecca Kuo, Tainan; Adam Hwang, DIGITIMES [Monday 14 March 2016]

http://www.digitimes.com/news/a20160313PD200.html

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