Taiwan government guides conventional industries' entry into optoelectronic materials industry

TAIWAN: Taiwan's domestic optoelectronics industry is growing rapidly. Output value, at NT$182 billion in 2008, is expected to reach NT$320 billion by 2015.

Opposite from overseas industries, domestic optoelectronics industry development tends to begin with downstream technologies and grow into mid- and upstream technologies.

Moreover, while overseas upstream optoelectronic materials industries generally include chemicals, textiles, and other conventional industries, the same industries in Taiwan are not traditionally familiar with the optoelectronic materials industry, and therefore require government guidance and assistance for industry transformation.

To encourage domestic firmss' entry into the optoelectronic materials industry market, the Ministry of Economic Affairs (MOEA) has drafted related guidance measures for flat panel display and photovoltaic materials:

First, implementation of the three-year "Project for LCD Materials Localization Promotion" will end in 2009. The Project has helped over 20 conventional chemicals and textiles companies enter the market for optical-grade TAC and protective films and related raw materials; these companies include Eternal Chemical, Exploit Technology Co, Shinkong Synthetic Fibers Corporation, Chang Chun Group, ACHEM Technology Corp., and others. Investment in these areas are expected to reach NT$5.9 billion in 2009 and NT$21.2 billion in 2012.

Second, the "New Leading Product Developing plan" has provided guidance to conventional industry companies, including the Tainan Spinning Co., Pou Chen Group, Tai Yuen Textile Co., Everfine Industry Corp., and eChem Solutions Corp., for producing raw materials such as flat Panel display packaging and reflexive packaging materials, as well as any materials used in the manufacturing process.

Raw materials for touch-screen panels and Gen 8.5 flat panel displays, including ITO film and ODF rubber materials, are also being developed by Efun Technology Co. Gamma Optical, and Daxin Materials Corp., with investments totaling NT$2 billion.

Third, the "Project for Environmentally-compatible Optoelectronic Materials Industry Promotion" provides government guidance for investment in low-power, low-toxicity, as well as recycled and environmentally-friendly optoelectronic materials.

The Project aims to establish and transfer more than 20 key technologies to industry firms in four years to facilitate a transition into mass production, and expects to generate up to NT$1 billion in investments.

Finally, the "Plan for Establishing an Optoelectronic Materials Industry Environment" is a comprehensive development strategy for the photovoltaic industry, providing guidance to domestic firms for the production of photovoltaic materials through the "New Leading Product Development Project."

Sun Material Technology Corp., Taiwan Polysilicon Corp., and Muto Silicon Corp. are currently building manufacturing facilities for polysilicon materials; upstream industry supply for these facilities, such as Taiwan Glass' low-iron glass and Gigastorage's silver/aluminum paste, are already in mass production.

In addition, mass production of ethylene vinyl acetate (EVA) and welding materials will begin respectively at Formosa and Shenmao Technology's production lines¡Xa combined investment of NT$700 million. The domestic supply of photovoltaic materials is expected to meet domestic needs by June 2010.

Taiwan's conventional industries have amassed much optoelectronic industry production expertise in a short period. Government assistance has not only led to successful industry transformation but also filled the domestic niche for photovoltaic and flat panel display materials for increased output for export. Total investments from the two industries are expected to reach NT$30.8 billion in 2012.