LCD panel makers Chunghwa Picture Tubes (CPT) and HannStar Display will see financial improvements as amortized costs are decreasing, according to the companies.
CPT's amortized cost mainly has come from its 6G plant. The amortized cost dropped from NT$25 billion (US$762 million) in 2009 to NT$19 billion in 2010, the company indicated. As the second-phase equipment depreciation of the 6G plant will end in 2011, the amortized cost will further decrease to NT$14-15 billion, the company explained.
HannStar has a 5.3G plant under depreciation. The first-phase equipment depreciation of the plant will end in the first quarter and the second-phase in second-quarter 2011, with the amortized cost for 2011 to be reduced to about NT$5.5 billion from more than NT$10 billion in 2010, the company said. Since the depreciation in the third phase will end in second-quarter 2012, the amortized cost will further drop to about NT$3.5 billion, HannStar indicated.
In addition to decreasing depreciation costs, CPT and HannStar have increased production of small- to medium-size panels to hike capacity utilization.