IPS Alpha: LCD TV demand will advance into

The new LCD panel plant made by Hitachi, Toshiba and Panasonic joint venture in the construction industry began production in May. At present, the production equipment has been moved into the factory, into the process of picking up the stage, the production time of more than 2 months ahead of the original plan. Nikkei industry news on the background and future development strategy for this decision, visit the joint venture of three companies IPS Mine Shim Technology president of the Alpha. The contents are as follows:

LCD TV demand continues to expand in 2006 LCD TV demand is estimated to be 34 million units, but there are up to the possibility of 36 million units. After the world cup in June, the demand should not have a significant slide. 2007 estimates can grow to the size of 5000-5500 million units, in 2008 will also show a sustained growth trend. In addition, the screen size will continue to large-scale development. In particular, the 32 inch panel as the center of the situation appears out of stock. The new production line of IPS Alpha is the sixth generation production line which is most suitable for cutting 26-37 inch panel (1.5m * 1.8m). In the three companies reached an agreement, decided to put into operation ahead of schedule.

Three companies to invest billions of yen in new factories, but the Sharp annual investment of 200 billion yen from the LCD panel production capacity, how to compete? Hitachi and Matsushita in 37 Inch segment with PDP, and the group has its own manufacturing plant PDP panel. Therefore, it can not be compared with the professional LCD manufacturers, but should include the capacity of PDP to compare. IPS Alpha production plan includes the new plant part, the second phase of the expansion project has also decided to start in April 2007 with an annual output of 2 million 500 thousand (32 Inch Conversion) production system will be fully loaded production. As demand is expected to continue to expand, the next third expansion plans are expected to be finalized around June.

IPS Alpha in the TV panel market is lagging behind, the competitive strategy of Japan's panel manufacturers compared to foreign manufacturers, the production of a variety of panel types. The production of new products in the factory to take the reverse thinking, planning is limited to the best conditions for the production of TV panels, in order to achieve the purpose of easy management. A small number of production models can also reduce the proportion of personnel costs, to compete with South Korea, Taiwan manufacturers.

The LCD panel industry gradually came to substrate size sixth generation production line is too small? LCD panel production line with the generation of evolution, production equipment increasingly huge, currently more than 40 inch television to PDP more advantages; therefore the LCD panel winning 32 inch, 37 Inch products, take the substrate the size of the highest economic cutting, the best investment benefit is necessary thinking. A Taiwan manufacturer also said: the production of 32 inch panel, then the best efficiency of the 5.5 generation production line". In more than 40 inch LCD or plasma TV market, will win, into next year will become clearer, in the third expansion project decision, further expansion, he will use the generation of new factory production lines, will be investigated after the judgement.

IPS Alpha LCD panel market share why the main 26 inch -37 inch market share is expected to exceed 15%. The production number of nearly 8 will be sold to shareholders of Hitachi, Toshiba and Matsushita, the remaining 2-3 into foreign sales. The three shareholders have very high share in the television market, the new factory production, high quality Hitachi IPS LCD technology is also expected to increase market awareness.