Aug 30, 2000

Nan Ya Plastics Corp., Formosa Plastics Group's core affiliate,is constructing its second STN-LCD (super twisted nematic-liquid crystal display) factory, with commercial operation scheduled for the second quarter of next year.

Nan Ya was the first local manufacturer to produce color STN-LCDs of medium and small sizes. It has an STN-LCD factory in Nankan of Taoyuan County, northern Taiwan, with monthly production capacity using 100,000 300mm x 350mm and 300mm x 450mm glass substrates in total, at an average defect rate of 10%. The factory also produces color STN-LCDs, with production volume to take up 20%-30% of all STN-LCDs at the end of this year.

In anticipation of growing demand for color STN-LCDs in 2001, the company is expanding the production capacity of the product item by setting up the second STN-LCD factory. The new factory will be mainly for production of color STN-LCDs from monthly consumption of 100,000 370mm x 480mm glass substrates.

The sizes of color STN-LCDs will range from 3.8 inches to 10 inches, primarily for use in PDA (personal digital assistants), e-dictionaries, and other handheld electronic equipment. After the second factory begins commercial operation, Nan Ya's production volume of color STN-LCDs as a percentage of the total will rise to 70%.