Chi-Mei Optoelectronics (CMO) is a world-leading manufacturer of TFT-LCD display panels for use in applications such as desktop monitors, notebook PCs, and LCD TVs. The company was founded on August 6, 1998 and was listed on the Taiwan Stock Exchange (stock symbol 3009) in August 2002. As of early 2006, CMO had over 15,000 employees worldwide. CMO has long cultivated its base at the Tainan Science-Based Industrial Park, where it currently operates four production facilities including one 3.5-generation fab, one fourth-generation fab, one fifth-generation fab and one 5.5-generation fab. To maintain a high level of competitiveness and flexibility, CMO is relentless in its investment activities and has aggressive plans for the deployment of its next-generation plants. In addition to capacity expansion plans for its current facilities, CMO is in the process of building its second fifth-generation fab, and a new 7.5generation fab. With its commitment and heavy R&D focus on the highest quality of in-house self-developed technologies, CMO is able to attract the most brilliant TFT-LCD R&D talent in the industry. In addition to ongoing innovation in production process technologies, CMO strives to satisfy consumer demands and expectations for high quality LCD panels by continually making technology breakthroughs and refinements. CMO is also dedicated to facilitating the clustering of the Optoelectronics Industry, and has put tremendous effort towards vertical integration with its suppliers. CMO has brought together leading upstream suppliers, including producers of glass substrates, backlight units, polarizing films, cold cathode fluorescent lamps and driver integrated circuits. CMO also initiated the Optoelectronics manufacturing cluster in Tree Valley (previously known as the LCDTV & Industrial Support Park), and has been ahead of the curve in localizing the procurement of key components and equipment to enhance supply chain efficiency. This in turn has significantly stimulated the upgrade and development of Taiwan’s innovative Optoelectronics Industry. The world is currently entering a new golden era of high definition digital TV and multimedia. As one of the leading manufacturers in the global LCD-TV panel industry, CMO continues to focus on the development of advanced technology and innovative products, and shares in the responsibilities of promoting the knowledge-based concept of the “digital home”. Last year, CMO organized the “2005 Digital TV Technology Forum” in which government representatives and experts from around the world were invited to share their experiences and visions on the future of the digital home. We at CMO believe it is our duty and obligation to satisfy our customers’ needs and expectations with high quality displays, and to enhance Taiwan’s presence in the world’s TFT LCD display industry.
2005 Operation Results
In 2005, CMO’s panel production set another historical record. Annual panel shipment increased by 90% to 23,685 thousand units, while annual revenue increased by 49% to NT$152, 844 million. Net profit amounted to NT$ 8,047 million. Revenue from LCD-TV panels contributed over 40% of annual sales, with an annual shipment of more than 5.5 million units. Our annual capital expenditure was NT$ 62,018 million.
We expect that the China market will play a very important role in our global operation strategies. Therefore, we established Ningbo Chi Mei Optoelectronics in the second half of 2005, which was a very important first step to implement CMO’s global operation and cost reduction strategies. More importantly, Ningbo Chi Me Optoelectronics, as our first investment in...