The National Development Regulatory Commission (NDRC) approved SVA-NEC’s US$300 million expansion plan to bolster its LCD production capacity from 396,000 units to 1.02 million. Shanghai SVA Photoelectron, a unit of SVA Group, will invest US$225 million into SVA-NEC and NEC will invest the rest.
SVA-NEC has so far concentrated on 15″, 17″ and some 19″ LCD monitor panel production. These commodity items have experienced excrutiating price erosion that has led to great set prices at retail. However, LCD panel makers are experiencing difficult times as price erosion has been much quicker than the decrease in cost of production.