SVA-NEC invested US$400 million to increase its production capacity by 88%, potentially doubling annual revenues. SVA-NEC’s capacity will be 12.15 million 15″-equivalent panels on an annual basis, making it the largest producer of TFT LCDs in China, surpassing its rival BOE. The increase in capacity is in preparation to meet the strong increase in LCD demand from China. Target revenue for 2006 is between US$6 – 7 billion, double that of 2005.
Currently, SVA-NEC manufactures 15″, 17″, and 19″ LCD monitor panels along with 20″ (4:3) and 26″ (16:9) LCD TV panels. The SVA Group, who owns controlling shares of SVA-NEC, plans to build two additional plants in Shanghai that can focus on 37″ and 40″+ LCD panel production. According to my calculations, focusing on 37″ can be done in a G6 line. However if 40″+ sizes are to be focused on, it must be done on a G7 line, much like what S-LCD is doing with its G7 line: mass production of 40″. LG.Philips LCD (LPL) also has a G7 line that manufactures 37″ and 42″. Due to the lower price points that 37″ can hit, LPL has been making more 37″ panels than 42″. However, 42″ panel prices should be coming down substantially as LPL will try to win the 40″+ battle against S-LCD.
Source: Shanhai Daily