Week overview29.10.2004 09:17
Sharp planning big increase in LCD production in 2005
(tecCHANNEL.de, 29.10.2004) Sharp Corp. is planning a substantial increase in production of LCD (liquid crystal display) panels during 2005 in the face of increasing demand for flat-panel TVs and the planned opening of a major factory operated jointly by two of its biggest rivals.
The production increase will take place at its factory in Kameyama in western Japan and push monthly input capacity from 27,000 sheets of mother glass per month to 45,000 sheets per month under current plans, said Miyuki Nakayama, a spokeswoman for the Osaka-based company.
Each mother glass sheet is used to produce a number of LCD panels, the amount of which depends on the screen size. The Sharp factory uses so-called sixth-generation sheets that measure 150 centimeters by 180 centimeters and, in the case of 26-inch widescreen panels, each can be used to make 12 panels. In terms of such panels, the production increase will increase monthly capacity from 324,000 panels to 540,000 panels per month.
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Sharp opened the Kameyama plant in January this year with an initial capacity of 15,000 sheets of mother glass per month. This was increased to its current production level of 27,000 sheets in August when a second production line began operating. The company hasn't set a precise schedule for installation of equipment to cover the planned expansion but expects work to begin in the first half of 2005, said Nakayama.
To date, Sharp has invested ¥100 billion in the factory and the planned increase in production represents a further ¥50 billion investment, said Nakayama.
When the Kameyama plant opened in January this year, it was the most advanced LCD factory in the world and the only one using sixth-generation mother glass. However, a more advanced factory is currently under construction by S-LCD Corp., a joint venture between Samsung Electronics Co. Ltd. and Sony Corp. S-LCD's new factory in South Korea is expected to open in the first half of 2005 and will handle more advanced seventh-generation mother glass, which measures 187 centimeters by 220 centimeters.
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The fast growing flat-panel television market is largely responsible for pushing demand for the type of large-size LCD panels that Sharp and S-LCD will be producing on their new lines.
Sharp estimates the worldwide color TV market will be around 130 million sets in 2004 of which about 7.5 million will be LCD models.
Reporting its first-half earnings on Wednesday, Sharp said demand for the panels is "burgeoning" and sales high-value LCDs were behind a 41 percent increase in the value of LCD panels sold during the period, which ran from April to September. Sales of televisions incorporating the panels also increased during the first half and the company saw total net sales increase 14.9 percent to ¥1.3 trillion (US$11.3 billion as of Sept. 30, the final day of the period being reported) from ¥1.1 trillion. Net income during the six month period jumped to ¥39.3 billion from ¥28.0 billion. (IDG)
