Wellypower Forecasts a 20% CCFL Supply Shortage in Taiwan in 2006

Taipei, Dec. 20, 2005 (CENS)--Wellypower Optronics Co. Ltd. Recently forecasted that there would be a 20% supply shortage of cold cathode fluorescent lamps (CCFL) in Taiwan next year due to active capacity expansions in LCD TV panels by makers of large-sized thin film transistor-liquid crystal display (TFT-LCD) panels.

According to Wellypower, all major local TFT-LCD panel makers have mapped out aggressive production expansion projects for large-sized panels, including AU Optronics Corp. (AUO), which aims to ship 10 million large-sized panels; Chi Mei Optoelectronics Corp. (CMO), 7.5 million to eight million units; and Chunghwa Picture Tubes, Ltd. (CPT), 3.6 million panels.

The top-three panel makers in Taiwan are expected to ship a total of over 20 million large-sized panels, Wellypower said, leading to a high pressure on CCFL supply. CCFL tubes are a key component in LCD panel backlight modules.

Wellypower pointed out that major panel makers in Taiwan adopt mainly CCFL tubes supplied by Japanese companies for use in their LCD TV panels and most of their notebook PC panels also use a lot of Japan-made CCFL tubes. That is expected to lead to a supply shortage of higher-level CCFL, the local CCFL maker said.

Industry sources said that currently a 32-inch TV panel uses about 16 CCFL tubes, and the quotation for each panel is about US$1.5 to US$2. That means CCFL tubes account for about 4% to 6% of a TV panel's total cost.

Major CCFL Makers' Capacities Unit: 1,000 units
Company	2005 Capacity*	2006 Capacity**
Harrison Toshiba	15,500	18,500
Sanken	12,000	15,500
West	9,750	11,500
NEC Lighting	6,250	7,500
Stanley	6,250	11,000
Kumho Elec	7,150	9,000
Wooree Lighting	3,350	4,750
Heesung Precision	3,150	4,000
Others	3,250	4,500
Total	66,650	86,250

*: Estimate.

**: Forecast.

Source: DIR, Polaris Securitues