The supply of TFT-LCD polarizers may fall short of demand starting the third quarter of 2011 due to limited capacity ramps by makers, while flat panel makers have continued to expand their capacities, according to an estimate by Chi Mei Materials Technology.

For Chi Mei, the fourth production line of its second plant has kicked off the front-end production of polarizers and is generating revenues of NT$50-100 million (US$1.73-3.45 million) a month currently, said the company, adding that it expects the whole line to reach a utilization rate of over 90% by the end of the year.

Buoyed by the new production line, Chi Mei Materials is expected to post revenues of over NT$20 billion in 2011 compared to NT$15.49 billion in 2010, industry sources estimated.