Taiwan-based polarizer maker Optimax Technology will suspend its plant at the Southern Taiwan Science Park (STSP) beginning on June 30, 2009, and shift all production to its Pingzhen base in northern Taiwan in order to reduce costs, according to the company.

But Optimax said operation at the STSP plant will resume when demand picks up.

Optimax has reported March revenues of NT$446.52 million (US$13.24 million), up 1.52% sequentially but down 60.01% on year. The company's accumulated revenues for January-March 2009 decreased 64.63% to NT$1.23 billion compared to the same period last year.

Taiwan-based polarizer makers have felt strong impacts from fellow LCD panel makers' production cut amid the global economy downturn, while Korea-based polarizer makers have been supported by Samsung Electronics and LG Display, market sources noted.

The global top-3 polarizer makers are LG Chem with a 28% market share, Nitto Denko with 27%, and Sumitomo with 18%, according to Displaybank.

Taiwan polarizer makers' global market share are significantly lower compared to Korean and Japanese competitors, the sources said, adding that Daxon Technology, an affiliate of AU Optronics (AUO) only has 5% of the polarizer market, while Chi Mei Materials Technology (CMMT) and Optimax have 4% each.