Chunghwa Picture Tubes (CPT), HannStar Display, and Innolux Display are increasing their output for the small- to medium-size LCD panel segment, which is seeing strong growing demand, according to company sources.

The makers are adjusting their product mix to give a higher proportion to small- to medium-size panels, which offer higher margins, as they seek to raise their profitability, the sources commented.

CPT in the second half of 2007 already shifted 40% of its 4.5G plant to producing small- to medium-size panels, and it is expected that the 4.5G plant will have 60% of its capacity devoted to the segment in the first quarter of 2008, and further up to 80% in June, the sources said.

CPT's 2008 shipment goal for the small- to medium-size segment is 68 million units, 20-21 million of which will be medium-size panels, the sources said.

The maker's medium-size panel shipments for the first quarter will reach four million units, reaching its goal that the segment's revenues will account for 10-15% of the company's overall first-quarter sales, the sources added.

HannStar, whose only LCD panel production facility is a 5.3G plant, originally planned to shift only 20,000 glass substrates monthly to the medium-size segment, but company president David Joe has revealed that the capacity for the segment will reach 30,000-40,000 substrates by the fourth quarter.

HannStar is raising the proportion of medium-size panel production because the production value of a substrate is higher when it is cut into medium-size panels than monitor-use large-size ones.

Innolux's 5G plant currently has a monthly capacity of 85,000 substrates, and it will increase to 88,000 substrates by the end of the second quarter, sources said. Of the current 5G capacity, 10,000 substrates are processed for medium-size panels, but by the fourth quarter, the capacity for the segment will be raised to 30,000 substrates, the sources said.

Innolux's shipments of handset-use small-size panels are expected to double in 2008, while medium-size panel shipments will also have strong growth for the year, the sources added.