TFT-LCD panel maker HannStar Display has expanded its cooperation with color filter (CF) maker Sintek Photronic for small- to medium-size touch panel business, and sold its 6G CF production plant to Sintek for NT$1.87 billion (US$59.59 million).
HannStar has also increased its investment in LED chip packager Unity Opto Technology by NT$53.8 million in order to further secure LED supply.
With business opportunities for touchscreen applications emerging and attracting panel makers to enter the touch panel sector, AU Optronics' (AUO's) CF subsidiary Cando has switched its focus to touch panels and is working closely with the panel maker. Besides developing products for Apple, Chimei Innolux (CMI) is reportedly to cooperate with optical glass processing services provider G-Tech Optoelectronics (GTOC), an affiliate of the Foxconn (Hon Hai) Group. Moreover, Chunghwa Picture Tubes' (CPT's) cooperation with Giantplus Technology and HannStar's cooperation with Sintek have all indicated that major panel makers are actively competing in the touch panel industry leveraging on their advantages of larger scale production capacity and technological resources to further heap significant pressure on touch panel makers.
HannStar is the first among Taiwan-based LCD panel makers to start transforming their business from the large-size LCD panel market to the small- to medium-size panel market. In addition to strengthening its finances, HannStar has close cooperation with Sintek in the touch panel business. HannStar and Sintek have together showcased their latest touch technology and products in Shenzhen, China, including applications for 3.8- to 4-inch smartphones, 5- to 12.1-inch tablet PCs, 17.3-inch notebook and 21.6-inch all-in-one PCs.
With demand for touch panels continuing to increase, HannStar and Sintek are adjusting their capacities in order to give Sintek more capacity for touch panel production. Monthly in-house capacity of CF at HannStar's 5.3G plant was about 90,000 substrates, but the company is installing new equipment at the plant with a goal to add extra capacity of 50,000 CFs per month by the end of the year, making up the volume of supply originally from Sintek.