The two leading LCD manufacturers are creating competitive advantage by improve their cost structures in manufacturing LCD panels. Samsung’s cost cutting project is titled “Mont Blanc Project” and has two goals: Integrate LCD driver ICs into the TFT thus reducing costs. The second is to integrate the gate driver ICs into the TFT panel and reduce the number of source driver ICs from 5 today to just 3 by a 2007-2008 timeframe. “Finding Hidden Loss” is a program to filter out costs that do not have substantial value-add in the areas of production, transportation, inventory, etc.
LG.Philips LCD has a project as well and it is named L2C 3020, which stands for Leadership in Cost Competitiveness. The goal is to reduce costs by 30% and attain sales profit margins of 30%. In addition, compared to its competition, LPL wants to have 20% better profit margins. LPL is tapping into the entire organization for ideas on how to reduce SG&A costs as well. To reduce energy consumption, LPL created a taskforce named Energy Save TDR. In addition, the fabs located in the city of Kumi (Gumi) has a slogan “War on Cost! Panel Center” to reduce costs.