SVA-NEC, to reduce the cost of manufacturing LCDs, will join forces with Fujifilm to build an in-house color filter plant. Color filters, as mentioned in the previous post, is one of the most expensive parts in making LCDs and bringing down costs is a crucial step toward being cost competitive. Being cost competitive is important because prices are dropping very quickly.
SVA-NEC is expected to sign an agreement on August 22 with Fujifilm to invest in a G5 color filter plant. The investment amount will be about 500 million yuan (~US$62.7 million) for the construction of the building and equipment purchases. An additional 500 million yuan will be invested toward the operation of the CF plant.
The SVA Group, the parent company of SVA-NEC, will hold 50% of the CF palnt while 25% will be held by SVA-NEC and 15% by Fujifilm. This is according to DigiTimes, but if you add up the controling stakes, they only add up to 90%. Where is the other 10%? Anyway, the new CF plant is slated to have equipment installed in the first quarter of 2007. Initial monthly capacity is targeted for 60,000 glass substrates and will move toward matching the capacity of SVA-NEC’s G5 fab.