HTC photoelectric $6 billion investment in the 6 generation LCD will be put into operation in 2007

When domestic LCD panel hutch BOE, SVA are in the capital and technology difficulties, respectively to 989 million and 140 million loss of huge losses in the semi annual report of the red Qi, a total investment of $6 billion in third domestic five generation line in Kunshan tension layout wildly beating gongs and drums. The mainland's first six generation LCD panel production line is expected to be approved by the relevant state ministries in September this year, in 2007 to open all the capacity.

It is understood that in addition to the current production five generation panel makers BOE, SVA and ready for production of Ivo, and secretive Shandong Yingkou six generation line, there are currently many new panel factory is brewing, and South Korea and the Taiwan giants LCD panel cost because of the competition pressure, to actively enter the mainland's several years ago in the form of wholly-owned factories in the mainland, it is reported that CPT is planning the location of factories, the mainland is expected to become South Korea and Taiwan China after the world's fourth largest LCD panel production center.

Sixth generation production line is expected to put into operation in 2007

The project is funded by the Chinese Hondar Huabiao Photoelectric Technology Co. Ltd. and Shengli Petroleum International Development Co., a joint venture to build high-tech projects, the investment amounted to $3 billion, in 2007 put into production. On this basis, the establishment of Dongying Shengda photoelectric science and Technology Park, the total investment is expected to reach $21 billion 700 million within 10 years.

Senior industry sources, a total investment of $LCD module manufacturing project of nearly 100 million, 10% of the proportion of investment, investment in Shengli Oilfield international oil development investment company, the remaining 90% are funded for HTC photoelectric. Hong Da photoelectric technology registered in the virgin islands.

According to the Dongying Municipal Development Zone relevant person in charge, the project uses the world's most cutting-edge technology "sixth generation TFT display manufacturing process, production monitor, mobile phone, digital camera, TV monitor etc..

Taiwan LCD giants have fought in the mainland

And there are rumors of Taiwan Baocheng group mysterious background of Kunshan dragon project, Shandong Shengda photoelectric project is also considered to have Taiwanese background. The first domestic sources of technology for the six generation production line, Shandong Shengda has been secretive, but executives at the answer media questions also stressed that from Taiwan. It is reported that, at present in the Taiwan area, with the sixth generation LCD production line of the enterprise only Optronics Corporation, CPT company and Guihui electronic company of a few.

At present, the core technology of LCD panel manufacturing are toiling in Japan and South Korea and Taiwan China grasp the hands of the enterprise, and strictly prohibit technology outflow of these enterprises.

Some analysts believe that Kunshan, Shandong and Dongying were marked by the curve of manufacturers in Taiwan to enter the mainland market, because the LCD industry has not yet bottomed out, the friends of Taiwan area five days, making the LCD panel CMO, CPT, color crystal are a substantial loss in profit sharply background LCD cost control panel manufacturers has become particularly important. A source said that the current government departments in Taiwan, there are more than the store before the Taiwan manufacturers are waiting to seek access to the mainland LCD market.

BOE SVA facing pressure to upgrade

With third out of five line and six line first in the mainland, BOE SVA will have to face greater pressure to upgrade. Is to continue to build the five generation line? Or invest in the six generation line? Two LCD giants will be caught in a dilemma. According to reports, the dragon is expected monthly capacity of 90 thousand pieces, Shengda capacity of 120 thousand, and the current BOE SVA is only 60 thousand pieces per month.

Through a joint venture with NEC SVA, BOE through a series of acquisitions, cut into the LCD panel market were mired in financial difficulties, and invested 6 billion yuan, 3 billion yuan in Kunshan and the Shandong Dongying project also immediately, for domestic heating is still in the "LCD display" Ming Jixian Product Manager Zhu Jun said to be cautious at present, the panel industry pattern is "oligopoly" pattern, the market most of the market share of Samsung, LG and PHILPS's top three. These three currently occupy more than 70% of the entire market, Zhu Jun believes that the domestic panel industry from the beginning of the investment has lagged behind the three companies.

Sixth generation LCD production line

According to reports, the sixth generation LCD production line project by using the current world's most advanced technology "sixth generation TFT display manufacturing process, production monitor, mobile phone, digital camera, TV monitor etc.. Total investment of 3 billion U.S. dollars, the annual production scale of 720 thousand, plans to put into operation in 2007. By then, employees will reach 20 thousand people, engineering and technical personnel and management will reach 10 thousand people.

Reporter observation

Short term effect of industrial agglomeration

According to BenQ display product manager Zhu Jun believes that the current downstream industry in optoelectronics industry chain has gradually matured, the main display manufacturers including AOC, BenQ, has been in the mainland to set up factories, such as BenQ currently LCD production capacity reached 1 million / month. According to reports, to become the industry center, must have a mature technology and complete supporting environment, a LCD production line to 100-200 related factories, the current domestic LCD industry chain is the most complete in the Yangtze River Delta region. According to the principle of the nearest supply, compared with Taiwan, the mainland can save 2 weeks time, so the mainland has the potential to become a liquid crystal manufacturing center.

But Zhu Jun believes that the current entry into the mainland market and foreign investment in Taiwan