Chi Mei Opto Electronics

Brief Introduction Chi-Mei Optoelectronics (CMO) is a universe-inherent creator of TFT-LCD unfold panels for use in applications such as desktop mentors, notebook PCs, and LCD TVs. The audience was founded on August 6, 1998 and was listed on the Taiwan Hoard Exchange (hoard genius 3009) in August 2002. As of existing 2006, CMO had balance 15,000 employees universewide. CMO has desire forced its infamous at the Tainan Science-Based Industrial Park, where it ordinaryly operates indecent formation facilities including one 3. 5-race fab, one indecentth-race fab, one fifth-race fab and one 5. -race fab. To observe a eminent equalize of competitiveness and flexibility, CMO is rigid in its siege activities and has foul plans for the deployment of its next-race establishs. In conjunction to compatability exaspect plans for its ordinary facilities, CMO is in the style of architecture its succor fifth-race fab, and a new 7. 5race fab. Delay its commitment and dull R&D convergence on the eminentest property of in-house self-developed technologies, CMO is efficacious to prompt the most luminous TFT-LCD R&D aptitude in the diligence. In conjunction to ongoing alteration in formation style technologies, CMO toils to meet consumer call-fors and anticipateations for eminent property LCD panels by frequently making technology breakthroughs and refinements. CMO is to-boot attached to facilitating the gatheringing of the Optoelectronics Industry, and has put awful trial towards upright integration delay its suppliers. CMO has brought contemporaneously inherent upstream suppliers, including resultrs of glass substrates, backlight units, polarizing films, self-possessed cathode fluorescent lamps and driver integrated circuits. CMO to-boot inaugurated the Optoelectronics manufacturing gathering in Tree Valley (previously notorious as the LCDTV & Industrial Support Park), and has been forward of the incurvation in localizing the procurement of key components and equipment to repair afford fetter power. This in diverge has indicatively stimulated the upgrade and result of Taiwan’s innovative Optoelectronics Industry. The universe is ordinaryly entering a new lucky era of eminent determination digital TV and multimedia. As one of the inherent creators in the global LCD-TV panel diligence, CMO holds to convergence on the result of slow technology and innovative results, and portion-outs in the responsibilities of promoting the knowledge-based concept of the “digital abode”. Definite year, CMO unembarrassed the “2005 Digital TV Technology Forum” in which legislation representatives and experts from environing the universe were invited to portion-out their proofs and visions on the advenient of the digital abode. We at CMO judge it is our trust and compulsion to meet our customers’ needs and anticipateations delay eminent property unfolds, and to repair Taiwan’s influence in the universe’s TFT LCD unfold diligence. Corpoobjurgate Structure Office Act 2005 Agency Results In 2005, CMO’s panel formation set another unromantic annals. Annual panel shipment increased by 90% to 23,685 thousand units, timeliness annual wealth increased by 49% to NT$152, 844 pet. Net bring-about amounted to NT$ 8,047 pet. Wealth from LCD-TV panels contributed balance 40% of annual sales, delay an annual shipment of further than 5. pet units. Our annual consummate compensation was NT$ 62,018 pet. Agency Strategies We anticipate that the China communicate obtain state a very weighty role in our global agency strategies. Therefore, we systematic Ningbo Chi Mei Optoelectronics in the succor half of 2005, which was a very weighty primitive trudge to tool CMO’s global agency and consume decrease strategies. Further weightyly, Ningbo Chi Me Optoelectronics, as our primitive siege in China, to-boot builds a zealouser infamous for the desire-term result of CMO in this competitive TFT-LCD diligence. Also, to collect eminent property customer use and observe seal customer relationships, CMO systematic two new subsidiaries, one each in Europe and Singapore. Additionally, CMO obtain endue further foully in the technologies of diverse key input components to caggravate our audience from germinative diligence-remote shortages. 2006 Operational Goals Buoyed by the anticipateed zealous repossession call-for and impending emergence of digital existence, the universeremote TFT-LCD communicate is prejudgeed to proof zealous enlargement and bring-abouts in 2006. To corroboobjurgate our aspect as a inherent creator of LCD-TV panels, we obtain guard expanding our formation compatability through the concretion formation and bolster up of our succor 5G Fab and Ningbo Chi Mei module nock establish, as polite as achieving eminenter yields at the 5. 5G Fab and the equipment move-in of the 7. 5G Fab. Meanwhile,CMO obtain foully endue in the communicate of key input components to consummate consume decreases in an fruitful style. For 2006, delay all our empolyees’ trials and alterations, we accept self-reliance in guarding our aspect as a inherent creator of LCD-TV panels. In conjunction, we obtain hold to toil for eminenter communicate portion-out in the notebook computers and desktop mentors communicates. Operational Highlights Office Activities CMO’s room of office understands the investigation, result, formation and sale of TFT-LCD unfold panels and distortion filters. 2005 Sales Chart: Diligence balanceview Due to the dominating technology, heterogeneous applications and consume resultiveness, TFT-LCD mentors has befit the deepstream result in the vapid panel unfold diligence in new-fangled years. In 2005, the suppliers of the key components such as backlights, distortion filters, driver ICs, and polarizers benefited greatly from the zealous call-for generated by the concretion formation of next-race TFT-LCD fabs. According to DisplaySearch, Taiwan’s portion-out of universeremote LCD TV panel wealths grew dramatically from 27. 4% in 2004 to 38. 7% in 2005. TFT-LCD is a consummate-intensive and technology-intensive diligence. The deep countries understand Taiwan, Korea and Japan. In 2005, LCD TV panels bloomed due to the allay concretion formation and bolster up of universeremote ifth race and aloft fabs. According to DisplaySearch, the formation of LCD TV panels increased to 28 pet units in 2005 from 8 pet units in 2004. In the spent, the deep creators convergenceed on competing for eminenter formation compatability. Now, in appoint to bring-about melioobjurgate aspecting in the advenient LCD TV communicate, the key stateers are paying further circumspection to accuobjurgate call-for predictions, elastic formation, and new slow technologies. Also, the compensation fluctuations of LCD TV panels accept allayed out compared to anteriorly 2005. The aftercited chart is an balanceview of the TFT-LCD diligence: R & D Expenditures Short and Desire Term Operating Result Plan In 2006, CMO obtain once toil to detain a eminenter communicate portion-out in the TFT LCD communicate and collect further heterogeneous results A. LCD-TV Result CMO obtain once mend our communicate portion-outs and wealths in this communicate. Due to the zealous call-for for LCD TVs, we obtain propose an enlightened result method of generous HD panels aloft 40” to aim the call-fors of our clients. Based on our firm universeremote customer infamous, CMO obtain hold to mend the agency act in each area. Also, CMO obtain further foully study new office opportunities in discloseing countries. B. OA Result In 2006, CMO anticipates to detain 1 to 2% further communicate portion-out than definite year in the desktop mentor and notebook applications. We obtain propose further competitive remote-format results, and disclose 22”, 24” and 30” panels for the mentor portion. Also, we obtain result notebook panels in our fifth race fab, which obtain mend our competitive use as polite. In 2006, CMO obtain not barely propose further heterogeneous results, but to-boot once collect our customers delay melioobjurgate use and coagency in appoint to consummate eminenter a communicate portion-out in the TFT-LCD diligence. Diligence enlargement prejudge DisplaySearch has prejudgeed the large-sized TFT LCD panel call-for in 2006 to depend of 7. 86 pet units for notebook computers and 135 pet units desktop computer mentors (11. 6 pet units for other applications), delay appertaining annual enlargement objurgates anticipateed to be 24% and 14%. We result notebook panels in our 3. , indecentth and fifth race fabs, which can economically cut sizes such as 12. 1”, 13. 3”wide, 14. 1” and 14. 1”wide, 15”and 15. 4”wide, and 17”wide. Mentor panels are resultd in our indecentth, fifth, and 5. 5 race fabs, which accept economic biting sizes for 17”, 19”, 20. 1”, 19” remote, 22”remote and 24” remote format. CMO’s communicateing analysis anticipates the LCD TV panel communicate obtain strain almost 43 pet units delay an annual enlargement objurgate of 54% in 2006. Further weightyly, 32” and aloft panels obtain aggregateity for further than 40% of the aggregate communicate. We accept corroborateed our aspect in the 20” and aloft LCD TV communicate in the spent 3 years. Our annual LCD TV panel shipment is further than 5. 5 pet units in 2005. CMO’s communicate portion-out in LCD TVs is on par delay the two Korean creators. Our innovative technologies and results accept enabled CMO to mould indicative advances. Manufacturing Style Sales and Formation balance the definite 2 years Domestic and Export Sales balance the definite 2 years Financial Analysis of the Definite Five Years Unconsolidated Sales Breakdown by Application Sales Breakdown by Application Unconsolidated Sales Breakdown by Panel Size Sales Breakdown by Panel Size