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R&D Efforts Bearing Fruit in Taiwan's Optoelectronics Material Industry

Published by MOEA(IDB): 2010/6/1

R&D Efforts Bearing Fruit in Taiwan's Optoelectronics Material Industry

According to data provided by the Photonics Industry & Technology Development Association (PIDA), Taiwan's optoelectronics industry has an annual output of NT$1.724 trillion, including NT$171 billion in materials. This figure is expected to reach NT$320 billion by 2015. With government support, domestic optoelectronics material manufacturers have developed new products and rapidly achieved independent material capability. Domestic self-sufficiency is instrumental to the viability of Taiwan's optoelectronic sector in the face of price-cutting pressure. In response to industry changes, the Ministry of Economic Affairs (MOEA) has been promoting the following measures to help Taiwan develop its optoelectronics material industry:

1. With government assistance from 2007 to 2009, many businesses have successfully developed new products such as the EVA packing materials for solar cells, conductivity adhesive, welding materials, TAC film for flat panel displays, reflective packaging material, packing material of backlight module, rubbing clothes, chemicals for solid capacitors in passive components, protective materials, and other related optoelectronics material materials. More than ten manufacturers participated in the plan and are now part of the domestic supply chain. They also have invested over NT$5 billion, produced output value of NT$8 billion, and created 150 new jobs.

2. In 2010, the government continues to promote the development of various new optoelectronic materials, including color resist for flat panel displays, low-yellow index crystallized indium tin oxide film, sealant, optical protective film, back sheets for solar batteries, low temperature conductivity material, insulating materials for printed circuit boards, new types of IC substrates, and thermal dye ribbons. This plan is expected to lead to NT$5 billion in new investment, NT$8 billion in new production value, and create up to 200 jobs.

3. A three-year plan to “Increase Localization in Flat Panel Displays” was carried out from 2007 to 2009. It helped participating manufacturers to establish pilot production lines for various products, such as polyvinyl acetate film, which is the key material to flat panel display, multi-function TAC film, multi-function diffuser, liquid crystal materials, and optical protect film. In addition over 30 domestic businesses with chemical engineering, chemistry, and textile expertise joined the development of associated materials for flat panel displays. A total of more than NT$20 billion was invested and production value was boosted by NT$30 billion, creating 100 new jobs.

4. In 2009, the four-year “Environmental Compatibility of Photoelectric Materials Plan” was launched by the MOEA to promote development of low-consumption, low-toxic, regenerative, and environmental optoelectronics materials that soon can be utilized in the LED, photovoltaics, and electronic packaging industries. The first stage envisions an investment capital of NT$150 million and an increase of production value of NT$370 million. Over 20 key techniques are anticipated to be established in the latter three years, accompanied by production lines launched by the involved manufacturers, with an investment capital up to NT$1 billion, increased production value of NT$1.5 billion

5. In order to supply the silicon material for domestic solar cell manufacturing, the MOEA has assisted Taiwan Poly-Silicon Corp. to complete the first stage of factory construction in the Pingtung Export Processing Zone. The facility is being tested and is expected to start supplying a small amount of materials by the end of June this year (2010). In addition, Top Green Technologies, Inc. is building a factory at the Changhua Coastal Industrial Park. In the first stage, an investment capital of up to NT$23 billion by two companies is expected and the initial production value is estimated to reach NT$15 billion, with up to 500 new jobs created. While Taiwan is a new entrant to the optoelectronics material field, compared to the United States and Japan, local companies have many extensive technical know-how and experience in traditional manufacturing. With the assistance of related government authorities, they can not only rapidly increase Taiwan's competitiveness in the optoelectronics material sector, but also create an opportunity to revive traditional industries. The aforementioned assistance effort is estimated to increase investment by over NT$4 billion, increase production value by NT$63 billion, and create up to 950 new jobs.

Competent Agency: Consumer Goods and Chemical Industries Division, Industrial Development Bureau, Ministry of Economic Affairs

Contact person: Mr. Ku-Song Wang

Telephone: (02) 27541255 ext 2335

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