On July 24, CMO began construction of its LCD factory in Foshan’s Nanhai District. The factory will be the largest in the Guangdong province. Total investment will be more than US$2 billion with the first phase of mass production targeted for late 2007. Total capacity will be 2 million LCD modules per month and will be reached in the fourth quarter of 2008. CMO’s Jack Lin, SVP, stated that the Beijing Olympics would be a substantial business opportunity for CMO. TVs made in the Guangdong province account for 47% of China’s total output but require and a technological upgrade, which the TFT LCD module factory will provide.
With LCD module assembly still being a very labor-intensive task, low-labor costs are one of the main reasons why LCD manufacturers are located module plants in China. However, as Chinese labor costs start to rise, LCD manufacturers will have to look toward technology to solve the problem of LCD module assembly in the coming years.
Source: People’s Daily Online