China-based touch panel makers have been expanding production capacity which will come online in 2014-2015, putting increasing competitive pressure on Taiwan-based makers, according to Taiwan-based supply chain makers.
Suzhou Victory Precision Manufacture, Guangdong Goworld and Shenzhen O-film Tech have budgeted CNY1.5 billion (US$246 million), CNY523 million and CNY800 million respectively to expand their production capacities, while Shenzhen Laibao Hi-Technology has obtained a CNY1.74 billion loan to expand capacity for notebook and tablet touch panels, the sources indicated.
In contrast, Taiwan-based touch panel maker TPK Holding has integrated production capacities at different factories and deferred installation of production equipment at a new 5.5G factory in northern Taiwan; Cando has temporarily stopped production at its 3.5G and 4.5G factories in northern Taiwan and a subsidiary factory in southeastern China; and Wintek will temporarily stop production at a 2.5G factory in central Taiwan and a 3G one in southern China by the end of 2013, the sources pointed out. |