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To: brushwud who wrote (3545)	10/22/1999 5:16:00 PM
From: Proud_Infidel	Respond to of 5867

Hitachi, Matsushita to build LCD production facilities By Yoshiko Hara EE Times (10/22/99, 5:08 p.m. EDT) TOKYO — Abandoning the reluctance held through their last two unprofitable years to make large-scale investments in LCD production, Hitachi Ltd. and Matsushita Electric Industrial Co. Ltd. have each decided to build a new LCD fab in anticipation of strong market demand. Hitachi will invest about $324 million to build its third LCD production line, named the V3 Line, at in its Mobara LCD works. The company hopes the facility will put it into position to take the lead in the LCD market in about two years, when Hitachi expects the market to expand drastically as LCDs gain wider use in TVs and other consumer electronics products. "Current shortage will be slackened by the end of next year when Taiwan manufacturers enter into production and Korean manufacturers increase their production," a Hitachi spokesman said. "But demand will continue to grow and we want to take the lead at that time." Hitachi will begin construction of the fab this month. It will invest about $133 million in the current fiscal year, then invest another $190 million in the subsequent fiscal year, unless the market changes drastically for the worse. The operation is scheduled to begin production in the second half of 2001. Once operations commence, Hitachi intends to continue investment in the fab to keep pace with market growth. The facility will eventually have a production capacity of 40,000 glass substrates per month, the company said. Hitachi is already using 650 x 830-mm glass substrates — currently the industry's largest — at one of its existing LCD lines. At the V3 Line, Hitachi intends to introduce a larger glass substrate for production efficiency. The 730 x 920-mm glass substrate that Samsung is planning to use at one of its facilities is one possibility for Hitachi, the company spokesman said. To cope with the various demands of different consumer products, the V3 Line will have the flexibility to produce various size LCDs, from monitor sizes to mid- and small-sized panels. Near-term expansion To meet the market's current urgent demand for LCDs, Hitachi plans to invest about $114 million in the current fiscal year to raise production at its existing lines by about 30 percent over its current output of 35,000 substrate per month. While Hitachi prepares for future demand, Matsushita Electric is aiming for a quick expansion of production with the new fab it plans for the Ishikawa prefecture. Matsushita said the facility will be ready for operation within 11 month, which the company called the shortest-ever period from construction to operation for an LCD fab. With a total investment of $305 million, construction of the facility actually began last month, and operation is set to begin next August. As the new fab will concentrate on 15-inch monitor-sized panels, it will use a 550 x 670-mm glass substrate. Matsushita already uses that sized substrate at its Uozu fab, which is the company's production base for large-sized LCDs. Since the same-sized substrate will be used in Ishikawa, Matsushita will be able to use the same production technology as the Uozu fab, which will contribute to the 11-month start-to-finish launch, a Matsushita spokesman said. The new fab will have a monthly capacity of 15,000 substrates, or 60,000 units of 15-inch panels. When the new fab begins operation next year, along with increased production at two existing fabs, Matsushita will have the total production capacity of 370,000 ten-inch equivalent units each month, the company said. eetimes.com