Plant set to more than double LCD production: News from Sharp Microelectronics

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Sharp Corp is to build a second LCD plant at its site in Kameyama City, Mie Prefecture, Japan. Total investment including building and production equipment will reach Y150 billion, and the start of production is targeted for October 2006. By operating the latest state-of-the-art plant using the largest glass substrates in the world, Sharp will be structuring a stable supply system for large-format LCD panels, with which it will develop the market for LCD TVs of 40in and larger.

While terrestrial digital TV broadcasts are becoming increasingly popular in Europe, terrestrial digital high-definition TV broadcasts have begun in North America.

In Japan, terrestrial digital TV broadcasts will reach 27 million households by the end of 2005, and the range is expected to increase to 37 million households by the end of 2006.

It is thus predicted that the demand for digital broadcast-ready LCD TV sets will expand rapidly both in and outside Japan.

Therefore, it has been concluded that production of LCD panels for TVs will have to be expanded substantially, which is why Sharp decided to start construction of the No 2 Plant at Kameyama.

The No 2 Plant will be the first in the world to adopt 8th generation glass substrates, which is optimum for the production of 40 and 50in-class models.

Eight 40in-class panels or six 50in-class panels can be obtained from a single 8th generation substrate, which is the world's largest, with sides measuring more than 2m.

Compared with the substrates of the No 1 Plant, the size will roughly be twice as big.

Together with the production of 30in-class panels at the No 1 Plant, the two plants will be able to produce an expanded lineup of panels, thereby building a stable supply system to respond to the needs of the market.

In addition, in order to develop the market for 40 and 50in-class LCD TVs, it will be indispensable to enhance cost competitiveness, while making the most of the advantage that LCDs have over PDPs in full HDTV performance.

Therefore, new parts and materials for the No 2 Plant are being developed together with parts and materials manufacturers from the initial designing stage with a target of substantially reducing costs.

Sharp will also aim to halve production lead-time and transportation distance within the plant by making changes such as improving the production process.

By such thorough 'one-of-a-kind production innovation', Sharp will achieve twice the investment productivity (calculated in 45in equivalents) of the No 1 Plant.

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