Up-stream flat panel component makers including AimCore Technology, Efun Technology, Gamma Optical, Join Well Technology and Wah Hong Industrial have all ventured into the production of indium tin oxide (ITO) conductive films, with the second ITO production line of Efun expected to enter into commercial production in November 2010, according to industry sources.

The inauguration of the second ITO production line will push Efun's total capacity to over 200,000 square meters a month, making it the largest ITO film maker in Taiwan.

AimCore currently has a production capacity of 40,000 square meters and plans to ramp its capacity to 120,000 square meters in the first quarter of 2011, while Join Well is rolling out 75,000 square meters a month and Wah Hong 50,000 square meters.

Gamma is also expanding its ITO film production capacity, expecting to reach 100,000-120,000 square meters in the first quarter of 2011. However, the company is likely to spin off its ITO film unit during a shareholders meeting slated for November 10.