Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Shoibal Datta who wrote (43944)	3/19/2001 9:28:02 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Taiwan's Two TFT-LCD Leaders Merge into World's Second-Largest Maker March 19, 2001 (TAIPEI) -- Acer Display Technology Corp. and rival Unipac Optoelectronics Corp. announced a merger to create AU Optronics, the world's second-largest TFT-LCD maker, following top-ranked Samsung Electronics Co., Ltd. The merger will be completed through a share swap on a 1 for 1.17 basis, with one Acer Display Technology share to be exchanged for 1.17 Unipac Optoelectronic shares in the deal. Lee Kun-yao, chairman of Acer Display, is slotted to chair the new venture. The move now is expected to kindle enthusiasm among the world's display makers to team up with each other to come through the industry gloom and to sharpen their competitive edge. Acer Display, Taiwan's second-largest display panel maker, is an affiliate of Acer Inc. Unipac Optoelectronic belongs to the semiconductor foundry giant United Microelectronics Corp. The merger between Acer Display and Unipac is the first of its kind since Taiwan moved into the display manufacturing industry, and it beats the merger of LG.Philips LCD Co., Ltd. to be the largest in the industry. Until now there have been eight TFT-LCD makers in Taiwan. The tie-up between Acer Display and Unipac may give a solution to other rivals in Taiwan to make them more comfortable in such a small but highly competitive market. Robert Tsao, head of UMC, said that the new entity formed by the merger between Acer Display and Unipac would account for 12.5 percent of world's total TFT-LCD production, second only to the 14.2 percent of Korea's Samsung, and putting LG.Philips LCD into the shade. Naturally, it will become Taiwan's largest TFT-LCD manufacturer, and expand its advantage over its Taiwanese rivals. The impact of the merger between Taiwan's largest TFT-LCD maker, Acer Display, and the biggest small- and medium-size TFT-LCD maker, Unipac, heralds a big shakeup ahead. The merger, which will result in the new entity becoming the world's second-largest TFT-LCD maker from the present eighth position, will bring a flurry of adjustments to the current rankings of the world-class makers. Furthermore, the move of forging ahead with mergers will be inevitable, as the makers will find it difficult to maintain an advantage in the capital-intensive, cost-efficient TFT-LCD industry if they lose the opportunity to standardize the products. Mass producing to win control of standardizing display and memory chip products is always the trick of Korean companies to win leadership in the industry. Nowadays, Taiwanese makers, eventually willing to give up the go-alone policy, have learned their lesson, and seem prepared to tie up with each other to tide over the industry recession caused by the market glut. The second-line TFT-LCD makers in Japan reportedly are beginning to consider selling their companies, retreating from a more and more competitive market, which is mostly controlled by Korean and Taiwanese makers. If so, the merger of Acer Display and Unipac is expected to speed up the process of team-ups between Japanese and Taiwanese companies. Besides, the greater China area will be another main factor to lure 24 TFT-LCD makers to merge in preparation to move into the vast emerging market. Related stories: Samsung Declared Winner in Large TFT-LCD Panel Market in 2000: DisplaySearch Survey Taiwan's TFT Panel Industry Sees Improving Fortunes TFT-LCD Companies Pursue Cost Efficiency by Forming Partnerships with LCD Makers (Commercial Times, Taiwan)