As IT (notebook and monitor) panel prices started to rebound due to returning demand, Chunghwa Picture Tubes (CPT) has recently started to see orders to return, and expects its utilization rate to increase to over 80% in the fourth quarter of 2010 from 70-80% in the third quarter, according to the company.

The two 4.5G plants of CPT remained at full capacity in the third quarter due to strong demand for small- to medium-size panels, and CPT also adjusted some 6G capacity for medium-size and touch panels.

CPT has completed equipment depreciation and amortization for all production lines but the 6G line, and expects to completed the first phase of amortization of the 6G line by the end of 2010. CPT noted that amortization amounted to about NT$5.6 billion (US$185.4 million) in the third quarter, and expects amortization to decrease starting in 2011. The panel maker expects more competitive quotes when the amortization is completed. For example, the cost for 15.6-inch notebook panels will drop by about US$5-10.

CPT is also actively reducing its capex, and indicated that capex for 2010 will only be NT$4 billion, down from previous estimates of NT$5.7 billion, as the company is being cautious about capacity expansion. CPT expects capex for 2011 to remain flat compared to 2010.