Mani posted recently the issue with NMGC and their sales decline resided in the shortage of flat panel display's Here's a article addressing some of this. In the past week I read in a print version (Computer world I think but I haven't found it on line to post) that laptop makers are in a jam that won't let up soon because of the exploding demand for flate panel displays is sapping up supply that will take 12-24 months to address. this effects NMGC as they are scrambling to add capacity for high end displays at a time that notebook mfg's aren't pushing lower end machines because of they can make more money on the high end stuff.
Copyright 1999 M2 Communications Ltd.
M2 PRESSWIRE
July 26, 1999
LENGTH: 833 words
HEADLINE: PHILIPS
Philips and LG create world's largest supplier of flat panel displays
HIGHLIGHT:
New joint venture to address worldwide industry display shortage
BODY:
Philips Flat Display Systems (FDS), a business group of Royal Philips Electronics of the Netherlands, and LG Electronics of South Korea will today finalize a previously announced manufacturing joint venture agreement, creating the world's largest supplier of Active Matrix Liquid Crystal Displays (AMLCD). The agreement, which will be signed at a ceremony in Seoul, gives Philips a 50 per cent stake in LG's wholly owned LCD business, LG LCD. Philips' total investment, valued at approximately US$ 1.6 billion, is the largest foreign investment in South Korean history, and Philips' biggest single investment ever. The transaction moves Philips into an immediately profitable leading position in the AMLCD industry.
This venture marks both companies' commitment to the flat panel display (FPD) market, which remains the fastest growing segment of the display industry. Analysts predict that the FPD market will grow annually by more than 20 per cent. In 1998 the FPD market was worth $8 billion. Increased demand for AMLCD panels is being driven by the advent of more affordable, higher quality displays, and the introduction of faster, higher performance notebook computers and the more comfortable and attractive LCD monitors, as well as emerging television applications. This demand has led to a worldwide shortage of leading-edge flat panel displays.
Through its stake in LG LCD, Philips will be able to provide the high-volume manufacturing capacity needed to minimize the shortage of high-quality flat panel displays used in desktop monitors, notebook computers, consumer electronics, automotive and multimedia and business applications. Key to this agreement is the manufacturing capacity of large-size panels, 15-inches and up, for use in the various applications.
With Philips' investment, LG will have an opportunity to strengthen its worldwide leading position in marketing and technology in the AMLCD industry. The deal gives LG LCD access to Philips' existing global marketing and distribution network, with which it will have stronger marketing initiatives. Combining the advanced research and development technologies of the two parties will provide the new joint venture with the most competitive technology potential.
The new company will begin as a manufacturing and technology joint venture with the potential to develop into a full joint venture over time incorporating all AMLCD activities of both companies. Philips FDS and LG LCD will share management of the newly formed company, headquartered in Seoul, South Korea, and its production facilities in Kumi, South Korea. Production at two of the Kumi fabs will be expanded to accommodate additional capacity, while the manufacture of 680 mm x 880 mm mother glass - the largest displays on the market - will be conducted at a new state-of-the-art fabrication facility. This third Kumi facility is expected to become fully operational in early 2001.
Mr. John Koo, Vice Chairman & CEO of LG Electronics, said: "The AMLCD business will be one of the core areas that LG will emphasize in developing business strategies in preparation for the digital era. This co-operation is proof that LG has secured world-class technology and quality in its AMLCD panel line. In particular, it will provide customers with new, versatile and convenient display devices for the coming digital age. LG will be a front runner in opening a new horizon in the display industry by forging a strategic partnership with Philips, one of the world's most technologically advanced electronics companies."
Commenting on the joint venture, Gerard Kleisterlee, Chairman of Philips Components, said: "As the world's largest manufacturer of color picture tubes, this agreement extends our commitment in display technologies. Our investment in LG LCD is a key step in Philips' strategy to build a leadership position in the display market of the digital future, in much the same way as cathode ray tubes (CRT) have helped Philips' maintain a leadership position in the television industry for more than 30 years."
"As the visual interface for virtually all electronic products, displays will play an increasingly important role in tomorrow's digital devices," said Matthew Medeiros, Philips FDS' Chairman and CEO. "In addition to demonstrating our commitment to the FPD industry and meeting our customers most advanced display requirements, this joint venture provides us with the manufacturing capability needed to develop a variety of screen sizes that deliver more functionality to the display surface."
CONTACT: Jeremy Cohen, Philips Media Relations
Tel: +82 19 2302183
e-mail: Jeremy.Cohen@philips.com
Karen Hopkins, Philips Flat Display Systems
Tel: +1 408 570 5505
e-mail: karen.hopkins@us.comp.philips.com
Tom McGuire, Philips Components
Tel: +31 40 27 24239
e-mail: thomas.mcguire@philips.com
JS Yoo, Philips Korea
Tel: +82 2 709 1281
Han-Koo Lee, LG Electronics
Tel: +82 2 3777 3918 |
