Hitachi announced its plan to invest over US$1 billion on its Chinese operations, spanning from 2004 to fiscal 2006. Hitachi's aim is to drive up the revenue of its Chinese group to US$7 billion in 2006 as well as China-based output to the same amount, a 130% increase from current levels.

 

HDD (Hard Disk Drive) and LCD (Liquid Crystal Display) are particularly targeted in this expansion effort. Hitachi Global Storage Technologies, a US subsidiary, is expected to invest US$500 million in production facilities in Shenzhen, Guangdong Province, primarily producing 3.5" disk drives for PCs. The factory is scheduled to come on line in the fourth quarter of 2005.

 

Japan-based Hitachi Display is expected to expand capacity at a production site in Suzhou, Jiangsu Province. The capacity will mainly be oriented for small panels.

 

Hitachi's expansion plan goes on to include R&D investment as well as procurement. The company is looking to add more Chinese engineers to its research team. An increasingly large share of components will also be procured from China.