Fuji Photo Film and SVA-NEC will establish a joint venture to manufacture color filters (CFs) for LCD TVs. The CF fab will be a G5 size. Since Sintek Photronics is a supplier of CFs to SVA-NEC, this joint venture will without a doubt negatively impact Sintek’s sales to SVA-NEC. SVA-NEC procured CFs from Sintek, Dai-Nippon Printing (DNP) and Toppan CFI. Of note, Toppan CFI stopped supplying CFs to SVA-NEC in June 2006. Sintek currently supplies 10,000 – 20,000 G5 CFs to SVA-NEC on a monthly basis.
Equipment installation for the G5 CF fab will be first quarter of 2007. Monthly capacity will reach 60,000 glass substrate input per month. SVA-NEC’s G5 TFT LCD fab’s monthly input capacity is 90,000 per month. The 30,000 difference will be made up by merchant CF suppliers like Sintek and DNP.