The $4 billion SVA seventh generation LCD screen to be put into production

Japan and South Korea will break the monopoly of LCD TV upstream

Known as the burn machine LCD screen industry has set off a new round of gamble". Yesterday, the reporter learned from the radio, by the end of 2006 or the beginning of 2007, the $4 billion seventh generation LCD production line will be put into operation in Shanghai.

This is the Chinese mainland enterprises in Japan and South Korea, Taiwan monopoly LCD TV upstream production is the latest and most violent impact. SVA Group Deputy General Manager Zhao Haihong said in an interview with reporters yesterday, once the production line, can fully meet the requirements of the liquid crystal panel is provided, with demand.

This is a huge project has been launched, and the need to invest huge amounts of money, this "burning movement" has become a "international game", SVA began to actively raise funds in overseas.

A LCD production line the initial cost is 14 billion yuan, so "super" almost cut off all mainland TV manufacturers own production of LCD screen dream. It is also because of this core component (LCD screen in the LCD TV accounted for nearly 80% of the cost of production) missing, 2005, in Japanese and Korean TV companies cut prices under pressure, Chinese TV makers like to sit on the collective profit decline big slide".

The day before, only SVA and BOE two enterprises were built fifth generation LCD panel line, only for PC, rather than the tv. Japan and South Korea and Taiwan LCD panel manufacturers dominate the upstream market.

Last year, outside the LCD screen manufacturers who are flocking to the more advanced, but also more money in the seventh generation and even the production line of the eighth generation. At present, SHARP and Samsung seventh generation production line has achieved mass production, the seventh generation production line LGPhilips and SONY has also been in full operation, once again raised the threshold of corporate earnings, China.

"It's like a train with no brakes on it." Zhao Haihong said. With the "player" increased, the whole industry hopes to advance upstream, SVA will continue in the upstream selectively shares. This is also a well-known consulting firm McKinsey to give its recommendations.

Previously, SVA NEC chairman Gu Peizhu has said in an interview with the Reuters, SVA NEC is commissioned by private Deutsche Bank, plans to raise 200 million -2.5 billion dollars. Nevertheless, SVA is still facing financial challenges, but Zhao Haihong said, SVA has even begun to consider a LCD screen production line.