ITO glass supply to remain short in 1H11, says AimCore president

ITO glass supplier AimCore Technology expects the shortage of ITO glass to continue into the first half of 2011, and in order to meet client demand, AimCore has started capacity expansion which is scheduled to join production in the third quarter of 2011, according to company president Alex Chiang.

The new capacity is expected to boost AimCore's month capacity by 50%, Chiang noted.

ITO glass is an key component for touch panel production. Suppliers in Taiwan include AimCore, GemTech Optoelectronics, Buwon ACT and G-Tech Optoelectronics. It is understood that capacity at every supplier is currently tight, and supply is short of market demand.

Chiang indicated that current order visibility is about two months, and supply is expected to remain tight in the first half of 2011.

AimCore has started capacity expansion and expects to add two production lines in the future. Current monthly capacity is one million units and is expected to increase by 50% in the third quarter of 2011 to 1.5 million units.

Current orders for ITO glass at AimCore are about 20-30% more than its capacity, and its production will remain at 100% utilization in the first quarter of 2011. However, AimCore expects better revenues and profits as it will change its product mix to increase shipments of medium- to large-size products, Chiang noted.