Taiwan-based backlight unit (BLU) maker Forhouse announced recently that it will invest an additional US$7 million in its Suzhou, China plant to boost light-guide panel self-sufficiency, according to a filing with the Taiwan Stock Exchange (TSE).
Construction has begun on the plant, which has received investments of US$3 million, with volume production to commence in the second quarter of 2007, the company said. Initial capacity of the plant will be half that of its plant in Houli, Taiwan, Forhouse indicated. However, the company declined to reveal capacity details of its Houli plant.
In related news, the company also said it expects to see its TV-use backlight unit (BLU) shipments exceed 200,000 units in August, up from 189,000 in July.
Forhouse suffered from a slow TFT LCD industry in the second quarter, with its consolidated gross margin sliding from 13% in the first half of 2005 to 9.45% during the same period this year while net profits decreased on year from NT$485 million (US$14.8 million) to NT$315 million.
Article edited by Eric Mah
