Panasonic has announced that it will be reducing its capital investment toward PDP (plasma display panel) and LCD TV plants through 2012 by JPY135 billion (about US$1.5 billion) to JPY445 billion from an initial plan of JPY580 billion. Panasonic has both PDP and LCD module plants. The CAPEX cut will be focused squarely on the company’s fifth PDP plant that is currently under construction at Amagasaki, Hyogo Prefecture, Japan. Panasonic originally had planned to invest JPY280 billion in the plant but has decided to decrease it by JPY70 billion to just JPY210 billion.
Panasonic will also reduce investments at its affiliate IPS Alpha, which is a LCD manufacturing company where Panasonic has significant share. IPS Alpha’s latest LCD fab will be built in Himeji, Hyogo Prefecture. Panasonic originally planned JPY300 billion for the LCD fab but has reduced it by JPY65 billion to just JPY235 billion.
In addition to reduced investments toward manufacturing plant, Panasonic is delaying production schedules by increasing capital investment phases. Investment phases for PDP plants will increase from three to four and two to three for LCD plants. “We are planning to determine our investment nearly on an annual basis, closely watching market conditions in and after fiscal 2009,” according to Fumio Otsubo, President of Panasonic.
For FY2009, Panasonic is aiming 15.5 million FPD (flat panel display) TV sales representing a growth of 150% Y/Y. The company will focus on basic models and emerging markets.
[tags]Panasonic, LCD Manufacturer, Display Manufacturer, IPS Alpha, PDP, Plasma Display Panel, PDP TV, LCD TV[/tags]