Taiwan-based TFT-LCD panel maker Chimei Innolux (CMI) has increased its capex for 2010 to NT$100 billion (US$3.11 billion) from previously estimated NT$60 billion for expanding its capacity for 6G and 8.5G production, as well as touch panels, according to company CEO Hsing C Tuan.

CMI expects to increase its overall monthly capacity to three million square meters in terms of glass substrate area by the end of 2010, up from 2.4-2.5 million square meters in March when the merger of Chi Mei Optoelectronics (CMO), Innolux Display and TPO Displays closed, Tuan noted.

CMI so far has ordered production equipment for its 8A 8.5G plant for an equivalent of 55,000-56,000 substrates in monthly capacity, and has installed already a capacity for 24,000 substrates, Tuan said on June 29 at CMI's first shareholders meeting since the merger.

Monthly capacity of the 8A plant is expected to reach 27,000 substrates by the end of 2010 and to 55,000-56,000 substrates by the third quarter of 2011, he said.

Tuan indicated that the 8A plant has enough space for housing equipment for up to 60,000-70,000 substrates per month, more than the capacity on the current equipment installation roadmap. The company will see how it will invest further to expand 8A to its maximum capacity, depending on the market situation and technology requirements, he said.

CMI has completed the construction of the building for its 8B 8.5G plant and capacity expansion at 8B will depend on funding and the market situation, he added.

CMI said it also plans to expand its LTPS panel capacity to 100,000 substrates per month from the current 75,000 substrates, amid surging demand for AMOLED applications.

CMI will also double or triple its monthly touch panel capacity to 4-6 million units by the end of 2010, Tuan said. CMI currently has two touch panel production plants in Taiwan and one in China, and it is currently building another in China, he said.