The expected synergies of merger of TFT LCD companies in Taiwan

• Main Authors: An-Hsu Lu, 呂安序
• Other Authors: Hsiao-Cheng Yu
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/24072711537267706770

碩士 === 國立交通大學 === 管理學院碩士在職專班科技管理組 === 94 === There has been high expectation of global demand of TFT LCD displays, which drove huge investments in this industry. The core technologies and mass production of TFT LCD started in Japan. But now, except SHARP, most Japanese TFT LCD companies have focused in the market of high-fidelity, high-resolution and small and medium-size displays. The TFT LCD companies in Taiwan and Korea compete fiercely in expansion of manufacturing facilities in an attempt to become the world’s leading TFT LCD provider. The race is on a path of no return. Merger and acquisition are commonly used strategic tools. Enterprises can raise synergies, seize market share and expand the economies of scale by means of M&A. The success of M&A relies on careful management of every step in the process. This study analyzed the costs and benefits of M&A between Taiwanese TFT LCD companies. Four companies were considered as candidates for M&A: two first-tier companies are AUO and CMO, and the two second-tier companies are CPT and QDI. The critical areas of investigation included the potential M&A target’s background, technical strength, product lines, production capacity, financial strength, customer relationship and so on. The pros and cons of each M&A scenarios were discussed.