Taipei has announced its intention to bail out the island's failing LCD sector.

Taiwan's premier, Liu Chao-shiuan, termed the LCD panel industry a "strategic industry" and pledged to support it during the global economic recession. "We will help the industry as much as possible. I hope the government supports the industry and the industry supports its employees," said Liu.

It should be noted that Liu recently met with CMO (Chi Mei Optoelectronics) founder Hsu Wen-long and company president Jau-Yang Ho. Nevertheless, Ho claimed that their discussion did not include any mention of bailouts, consolidation or mergers. Ho also clarified that CMO had no current plans for consolidations or mergers, but was willing to cooperate with other players in the LCD panel industry.

AU Optronics also confirmed that it was keeping its options open. "We're very open to any proposals or suggestions on how to further improve things at the company and within the industry," said a company spokesperson.

Analysts have long expected large-size LCD panel shipments to plummet in the fourth quarter after decreasing 2.4 per cent during the third quarter.

"Taiwan's large-size TFT LCD panel shipments dropped in the third quarter at a pace faster than the industry's average," explained Digitimes research display analyst, Tony Huang. "In the fourth quarter, demand for LCD TV panels will remain sluggish. With such major TV brands as Samsung Electronics, LG Electronics and Sony cutting their panel orders, Taiwan's TV panel shipments will drop drastically."

As IT Examiner previously reported, Taipei has also increased its efforts to rescue Taiwan's ailing memory manufacturers.

According to vice president Vincent Siew, the government will not abandon the memory industry, which currently accounts for 30 per cent of global supplies. Siew also encouraged the industry to "consolidate".

"If our DRAM industry in Taiwan can't take advantage of this opportunity and upgrade and become more competitive, even without the financial crisis, you can't survive," Siew told an American Chamber of Commerce meeting. X

Check Out
Digi Times
Reuters