CPT begins to supply Japan and first-tier handset customers

In addition to the white-box handset market in China, Chunghwa Picture Tubes (CPT) has cut into the supply chains of Japan-based and first-tier handset makers. Also, conversions of the company's 4G plant is finished and is in the process of beginning small- to medium-size panel production, according to company vice president SC Lin.

Lin indicated demand from China has become weaker and therefore shipments of small-size products will decline sequentially in the fourth quarter. The extent of the decline will depend on demand in December, he added.

Since there is uncertainty in the China market, CPT began supplying high-end panels to customers in Japan during the second half of 2008. Shipments to first-tier handset makers are also expected to increase in the first quarter of 2009, said Lin.

CPT expects small- to medium-size products to account for 80% of a single 4.5G plant's total capacity by the end of 2008, equivalent to about 72000 glass substrates per month. Although panel capacity is, in general, being reduced throughout the panel industry, the small- to medium-size segment is expected to see smaller cuts than for large-size panels, according to CPT.

Lin said he expects shipments of small- to medium-size products to increase in 2009 since transition of the 4G plant is now complete. The 4G plant has been installed with more advanced equipment which can provide better production efficiency to satisfy customer needs, Lin highlighted.