Asia Express - Display
Display - Material & Equipment Update, January 2005
January 21, 2005
The below is a compilation of display material and equipment-related announcements and events occurring between December 2004 and mid-January 2005. Coverage includes backlight, CF, glass substrate, LCoS, OLED, optical film, TV chip, other material announcements, and major events related to display material production.

Backlight

Kuraray

Successfully developed an optical material that streamlines the process of making backlights for LCD (Liquid Crystal Display) panels. Production of the backlight material is to take place at the maker's new line in Kashima Japan, starting in April 2005. Initial monthly capacity, averaged out to 15", is expected at 100,000 units, yet to rise to 240,000 sets by 2008.

Osram

To develop LED (Light Emitting Diode) backlight modules for LCD TVs with several Taiwanese system makers, including Coretronic and Chi Mei.

CF

AMTC

Plans to build a 6G CF (Color Filter) plant in Kaohsiung Taiwan have been halted due to unsettled talks with Toppan for technology transfer.

AUO

Will be receiving 6G CF technology transfer from Toppan. Set-up of its 6G CF line in Taiching Taiwan will begin in the second quarter of 2005. Meanwhile, the maker will either procure 6G CFs from Toppan or adopt 4.5G CFs in the first half of 2005.

CPT

Has not yet located the source of its 6G CF technology, but procurement of 6G CF equipment is scheduled for the second quarter of 2005, at the earliest, and in-house 6G CF production is to begin by the end of 2005. Before this, CPT will either procure 6G CFs from DNP and Toppan or make do with 4.5G CFs.

DNP

Mass production and shipment of 6G CFs in its Japan-based facilities are both slated to begin in the third quarter of 2005. The maker currently has no plans to build CF lines in Taiwan.

Sintek

Will be receiving 6G CF technology transfer from DNP and begin mass production in the second half of 2005, at the earliest. However, plans for its 6G CF plant construction have been delayed.

Toppan

The CF maker's Japan-based facility is already supplying to Sharp, while its Taiwanese division in Tainan is in the equipment set-up stage. Mass production and shipment for the Taiwan-based facility are both expected to begin in the second quarter of 2005.

Mitsubishi Heavy

Collaborated with Mitsumura to develop a prototype device that outputs four color filters simultaneously. The new device can cut production time by 75%; orders will be accepted as early as Spring 2005.

Glass Substrate

Central Glass

At a plant in Yamaguchi Japan, slated to come online by the end of March 2005, the company has converted a kiln and set up a processing base to generate glass substrates for PDPs (Plasma Display Panels). The glassmaker began supplying prototypes to panel makers in 2003.

NEG

Investing US$33 million (3.5 billion yen), the maker will construct a plant for LCD glass substrates in South Korea. The plant is to begin operations in January of 2006. Annual capacity is expected to reach three million square meters.

NSG

Mass production of PDP glass substrates is scheduled to begin at the maker's Chiba plant in early 2005. Around US$29 million has been allocated to implement the plan. Output is to go to panel makers both in Japan and overseas.

LCoS

JVC

To spend US$38 million (four billion yen) on building a new LCoS (Liquid Crystal on Silicon) plant in Yokosuka Japan for RPTVs (Rear Projection TVs). Monthly capacity of the plant is set at 20,000 units, which will boost the company's total monthly output to 90,000 units in June 2005.

Kolin

Subsidiary, DigiMedia, to acquire Prokia's LCoS department.

OLED

Toppoly

Plans are being drawn to build an OLED (Organic Light Emitting Diode) line in the company's second plant. Initial monthly output is set at 4,000 units, yet will eventually reach 20,000 units. Equipment set-up is to begin by the end of 2005 and mass production to commence in mid-2006.

Toppoly has also signed a deal to collaborate with Kodak in producing AM-OLED (Active Matrix Organic Light Emitting Diode) displays. Sampling of its 2.5" AM-OLED panel is to proceed in the second quarter of 2005; mass production is slated to begin in the fourth quarter.

Optical Film

Nitto Denko

Will be investing US$856 million (90 billion yen) into its LCD material business over the course of three years starting in fiscal 2005. Domestically, a new production facility will be set up in its Onomichi plant to make optical films for PCs; construction and production are to begin respectively in summer 2005 and June 2006. Capacity at its Kamayema plant in Japan will also see expansion; construction for which is to start in summer of 2006, while production is slated to begin in fall of 2006. Overseas plans consist of building a facility in Shanghai in fiscal 2005, which will be capable of processing and cutting films for mobile handsets, adding optical film lines in Suzhou China for PCs and TVs, and spending US$95 million on expanding production facilities in South Korea and Taiwan. In addition, Nitto Denko has an R&D center currently under construction, to be operational in July 2005.

TV Chip

Grace

Successfully developed digital TV receiver chip in collaboration with SMIC and China Elite Fudan University; the chip contains core technology for HDTVs (High Definition TVs), and is based on China's DMB-T (Digital Multimedia Broadcasting-Terrestrial) standard, while also adaptable to international standards

Oki Electric

Plans are made to provide LCD TV driver chips to LG. Philips LCD through the two's joint venture Lusem, located in South Korea. Oki will transfer the technology needed to Lusem, who in turn is expected to begin production in February 2005 at a monthly capacity of two million units. All output will go to LG. Philips LCD.

Sony

Plans to bring the manufacturing of driver chips for LCD TVs and LCD devices in RPTVs in-house. Production will be carried out on new lines at Kokubu, owned by subsidiary Sony Semiconductor Kyushu. A total of US$95 million (ten billion yen) is to be invested into the two-year plan at Kokubu. Construction will begin in May 2005, while operations will start by spring 2006. Sony also plans on boosting the capacity of SXRD (Silicon X-tal Reflective Display) panels on the new line; SXRD panels are used in Sony's projectors and RPTVs.

Other

CPT

To invest US$6.9 billion in building two next-generation plants in Taichung Taiwan; the plants will produce 19" to 50" ultra-wide viewing angle HD panels, and develop LED backlight, circuit design; CPT also plans on collaborating with Dupont to develop ink jet printing and TCF (Thin Crystal Films) technologies, while working with IC and PWB (Printed Wiring Board) makers to shorten response time and enhance color gamut.

JSR

Plans have been drafted to invest US$48 million (five billion yen) to form a subsidiary in Taiwan in early 2005. Construction of a Taiwan-based plant will begin around spring 2005 to make LCD materials including photosensitive spacers, and CF-use pigment-disperse color resist.

PKL

The Korean maker has plans to invest US$26 million in Taichung Taiwan to establish a company for the development, design, manufacturing, and sales of LAMs (Large Area Masks) for LCD panels.

Okuma

Expanded plant floor to produce large machine tools that make vacuum chambers.

Sumitomo Heavy

Spent US$4.8 million to expand plant that makes production equipment for large LCD panels cut out of substrates as large as 1,500mm x 1,800 mm or 1,900mm x 2,200 mm; the expansion has brought the maker's annual output to 200 units.