Display - Fuji Photo to Invest in New LCD TAC Film Lines
October 15, 2004
Expecting the expansion in flat-panel TV market to boost optical film demand, Fuji Photo plans to increase its output of LCD (Liquid Crystal Display) films by building two new TAC (Triacetyl Cellulose) film plants. TAC film is a core component of LCD panels, used to protect polarization film.
30 billion yen (US$273.4 million; US$1=109.7 yen) will be invested into the setting up of these plants, while another 80 billion yen (US$729.3 million) is expected go to the establishment of four TAC production lines at 15 to 20 billion yen (US$136.7 to US$182.3 million) each and two coating lines for WV (wide-view) films at 10 billion yen (US$91.2 million) each.
The location for the production lines is yet under evaluation, yet will possibly be situated in existing factories in Japan, Taiwan, or South Korea.
Fuji Photo is eyeing the high-profit segment opened up by a newly developed TAC film technology, which doubles as retardation film. Retardation film corrects color distortion and is essential to the VA-mode (Vertical Alignment mode) panels used in Sharp's and Samsung Electronics' large-screen TVs. The area is currently dominated by JSR's Arton film and Zeon's Zeonor film.
By lessening the number of layers in polarization film, the company claims that production costs can be lowered by 20% to 30% compared to process whereby makers must separately attach JSR film.
Rival Konica Minolta Holdings, is also increasing its capacity for TAC films. Fuji Photo's aggressive promotion of its films since August has already won it orders from at least one large domestic and one foreign LCD panel maker.