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Acquisition of Land for Sintek’s Second Touch Panel Plant

Sintek, CF (Color Filter) manufacturers, have procured a piece of land with a factory building in STSP (Southern Taiwan Science Park) from HannStar Display. Sintek proposes to invest NT$8.8 billion or $280.04 million, to organize a second touch panel base station, utilizing 4.5 G format.

This new plant is geared up to commence operations by the third quarter of 2011, with a capacity of 90,000 substrates per month, including upstream touch sensors and downstream module productions. The in-house module production will be utilizing about half of the touch panel output, and the balance will be sold.

At present, Sintek has a 5.3G plant, which is in reality the biggest production set-up for touch panels, with reference to the substrate size. Originally this land was acquired for accommodating a HannStar 6G CF plant. However, Sintek changed the plans and decided to establish a 4.5G plant, after looking at the market trends for touch panels. As the land acquired is huge, it also plans to initiate its premier touch module production line, with a module capacity of about half the touch sensors produced. Sintek is ready for the plant construction with all necessary equipment ordered, and predicts a 2011 (third quarter) volume production.

Regarding the finance aspect of this new plant, Sintek confirmed that it has adequate cash, and if necessary would be ready to go in for syndicated loans from banks, or even carry out rights issues, according to the prevailing market situations.

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