Encouraged by strong demand for notebook personal computers, Japanese makers of liquid crystal displays (LCDs) are making big investments to increase production capacity.
Fujitsu Ltd. is spending Yen…
Encouraged by strong demand for notebook personal computers, Japanese makers of liquid crystal displays (LCDs) are making big investments to increase production capacity. Fujitsu Ltd. is spending Yen 100 billion (US$ 813 million) to build the world“s largest LCD-production facility in Tottori Prefecture, Japan, while Sharp Corp. plans to build an LCD plant in Mie Prefecture for Yen 60 billion. Behind the expansion plans is the expectation that the market will double to Yen 1.5 trillion by the year 2000. Fujitsu is to begin work on its new facility in Yonago within the year, with completion scheduled for the second half of 1998. The plant will make active-matrix screens of 15 inches and larger, bigger than the 12-inch screens now used in most notebook computers. Because Fujitsu is increasing the size of its LCD screens, it will also have to enlarge the glass panels used to make them. In its first year of production, the new Fujitsu plant plans to make just over 150,000 15-inch screens. Sharp“s new facility, to be built in 1998, will be its second LCD plant. The industry“s top producer has also decided to spend Yen 10 billion to increase capacity at its existing Mie Prefecture plant, expanding monthly output by 50,000 screens. Sharp“s new plant is designed to produce 200,000 LCD screens a month with sizes of 11.3 inches and larger. The expansion plans, which are expected to be formally approved by Sharp management soon, are aimed at defending the company“s position as the top LCD producer. Other companies also are planning to boost their LCD-production capacities. IBM Japan Ltd. and Toshiba Corp. plan to spend just under 20 billion yen to increase capacity at an LCD plant in Shiga Prefecture operated by their Display Technologies Inc. joint venture. By early 1998, the plant“s monthly output is to be increased by 50% to the equivalent of 300,000 12-inch screens. The boom in LCD investment will benefit capital-equipment makers, many of whom are struggling because of decreased orders from chip makers. Japan“s largest maker of steppers, Nikon Corp., is already receiving more LCD-related orders. Tokyo Electron Ltd., a producer of photo masks and imaging equipment, expects to see its LCD-related sales jump 40% in fiscal 1997, which started 1 April.