Large-size panel makers, handset vendors to benefit from Taiwan victory against EU at WTO

Taiwan-based large-size TFT-LCD panel makers and handset vendors are likely to benefit from Taiwan's victory in the dispute against the European Union (EU) at the World Trade Organization (WTO), according to market sources.

The WTO has ruled the EU validated the ITA (Information Technology Agreement) by imposing a 14% tariff on LCD panels that are larger than 19-inch and equipped with high definition interface (HDI) terminals, digital video interface (DVI) terminals and set-top boxes.

With the WTO's ruling, the EU is expected to cancel the 14% tariff on 19-inch and larger LCD panels equipped with DVI ports, as well as the tariff on handsets and GPS products with TV functions, the sources noted.

With large-size panel makers such as AU Optronics (AUO), Chimei Innolux (CMI) and Chunghwa Picture Tubes (CPT) promoting compound monitor panels such as moniTV panels, WTO's ruling will help the panel makers to expand their market shares in Europe, the sources said.

Small- to medium-size panel makers added that the tariff on handsets and GPS products with TV functions has had a limited affect on small-size panels as small-size panel is considered components. Vendors such as HTC will be the main beneficiaries of the removal of the tariff.