January 21, 2005

Facility to counter fierce competition in LCD TV?market

Sharp to build $1.45B plant in Tokyo

TOKYO

Sharp Corp., the world’s biggest supplier of LCD TVs, plans to invest $1.45 billion (all funds U.S.) to build a second plant in Japan to make the glass used in flat-screen TV panels to counter fierce competition from Asian rivals.

The Osaka-based consumer electronics maker said its new factory in western Kameya city will start production of the glass known as substrates in October 2006.

It plans to start making 15,000 of the liquid crystal display panels a month and double production in 2007.

The new factory will increase Sharp’s LCD production significantly because each substrate is able to produce between six to eight panels, up from only three at its current plant, also in Kameya.

“We need to increase our production capacity,” said president Katsuhiko Machida.

He said the spread of terrestrial digital broadcasting worldwide is expected to sharply boost demand for high-definition LCD televisions.

LCD TVs, with their sleeker design and clearer images, have rapidly won buyers around the world.

Sharp faces strong competition in LCD TVs, especially from South Korea’s Samsung Electronics Co. and LG Philips LCD Co., which are also investing heavily in production facilities.

Sharp expects to sell 2.7 million LCD TVs in the fiscal year ending March 31, 4.5 million in fiscal 2005 and seven million the following year.

Sharp said it anticipates LCD sales of $8.03 billion in fiscal 2005, up 14 per cent from its estimate of $7.06 billion this fiscal year.

It trimmed its target for fiscal 2007 to $9.19 billion from $9.68 billion.

The Associated Press

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