Innolux Has No Plans To Adjust Production Capacity, Says Company
Flat panel maker Innolux has said that it has no plans to adjust its production capacity and that it expects its inventory levels, particularly for large-size panels, to taper off starting the second quarter.
The response came after recent market reports indicated that the company is likely to reduce its output in order to address its persistent high inventory levels, with the production of its Fab 6 and Fab 7 likely to be affected.
While production at its Fab 6 is likely to be suspended for annual maintenance, the reports also indicated that the production capacity of the Fab 7 is likely to be cut by 10,000 substrates in June and reduced further by 30,000 substrates in July.
Innolux confirmed that the production of its Fab 6 will be put off from May 21-24 for annual maintenance, including an engineering project of its cooling water pipe lines, and that the shortfall will be made up after production resumes.
However, the company said it has no plans to adjust its production capacity of its Fab 7 at the moment.
Meanwhile, the sources indicated that Innolux is expected to elect a new chairman at its forthcoming board meeting on June 20.
According to company plans, Jim Hung, currently a special assistant to the company's chairman, will be elected as new chairman, replacing incumbent Jyh-chau Wang, who will be then assigned to integrate the parent Foxconn Group's display business, the sources indicated.
In addition to Innolux, Foxconn's display business units also include Sharp, Sakai Display Products (SDP) and Century Technology (Shenzhen).