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Sintek Opto-electronic to Join Color Filter Market
Jun 2000
TAIPEI, Taiwan, June 6 -- Sintek Opto-electronic Corp. has finalized its cooperation agreement Printing Co., the last of its two partners in a venture to develop color filters. Sintek has agreed to work in conjunction with Printing Co. and IBM Japan Ltd. to develop the key components in the production of thin-film transistor liquid-crystal displays (TFT-LCDs). Sintek's agreement with IBM Japan was completed in October.
Under the terms of the agreement the three companies will set up four lines for the production of color filters in Taiwan. Sintek will represent more than 50 percent of the shares in the new company; investing $15 billion (NT) in the development of the new venture.
Printing co. will be responsible for detailed technical support in the manufacturing and sales of 3.5-generation color filters. Sintek has agreed to pay Printing a 2 percent royalty of revenue every year for eight years pending the creation of the first color filter production line. The companies have agreed to a product-yield rate of 80 percent. Total production from the new firm's color filter production lines is expected to exceed 150,000 units a month.

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