Chinese panel maker SVA and Japan's NEC have geared up for TFT LCD (Thin Film Transistor Liquid Crystal Display) panel production from their $1.1 billion plant in China. The Shanghai-based plant is now equipped with monthly capacity of 22,500 units and once the second-stage installment is finalized, monthly capacity is expected to jump to 52,000 in the first half of 2005.

 

In its further expansion, SVA is planning to invest over $1.5 billion building a second production line in 2005. A third plant, worth US$2 billion, is currently on the table with construction scheduled to begin in 2007. However, SVA has yet to decide whether to employ the current joint venture's technology or 6G technology on these future plants. The Chinese maker has aimed to build four LCD lines by 2010.

 

SVA and BOE are the only two Chinese makers producing flat panels. SVA's liaison with NEC and expansion plans mark a departure from a current industry wave, where Japanese, Taiwanese, and Korean panel makers are putting the brakes on capacity expansion due to oversupply.