The influx of orders is sufficient to sustain the operations of the two companies' production lines until April. It derives mainly from the massive demand for LCD TV panels associated with the extension of China's program of promoting the use of home appliances in rural areas throughout China, from the confinement of the program to 14 provinces and cities previously. The orders are mainly for medium- and small-sized models, including 26-, 22-, and 19-inch ones.

 

For Chi Mei, the surge in manpower demand is taking place not only at its front-end array plants in Taiwan but also at its rear-end LCM (liquid crystal module) plants in China. Zhao Meisen, vice president of Chimei's Ningbo plant, reported that in order to meet the surging demand, the plant was operating overtime during the Chinese Lunar New Year and plans to recruit 1,000 workers in February.

 

Executives in the line noted that the global LCD panel industry started to nosedive last June, ahead of other electronics lines, and might be the first one to bottom out.

 

K. Y. Lee, chairman of AU Optronics, reported that thanks to massive demand from China's rural market and the depletion of clients' inventories, the panel industry will definitely bottom out in the first quarter and will pick up continuously in the subsequent quarters.

 

AU and Chi Mei landed NT$73 billion worth of big-ticket orders from China's nine major TV makers early this year, including Konka, Hisense, and TCL, whose total procurement from the two suppliers is expected to top 12 million units, with the procurement value rising 59%.

 

Industry players, though, noted that while Taiwanese panel makers are cheered by the bounced demand, they are also suffering the headache of insufficient supply of components and parts, as many component and part suppliers have greatly scaled down their output amid the sluggish market.