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China forms new TFT-LCD consortium

Posted: 25 Apr 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Mark LaPedus? TFT-LCD consortium? Changhong? Skyworth? Konka?

China TV makers Changhong, Skyworth, Konka and TCL announced that they would partner with Shenzhen Shenchao Investment Co. Ltd to establish a TFT-LCD consortium called Shenzhen Co. Ltd, according to iSuppli, a market research firm.

The venture intends to build a sixth-generation TFT-LCD production line in China. The four companies, which make 30 percent of the world's TVs, are forming the venture to develop a production base for its own LCD TV lines, according to the report.

There are many questions about viability of the venture, with the entity still undecided to which Chinese city to construct the production line.

One partner in the venture, Shenzhen Shenchao, has already experienced a hi-tech false start. The company was supposed to build a 200mm semiconductor fab, but the construction has yet to commence, said iSuppli.

At present, China boasts two fifth-generation TFT-LCD efforts. One venture, called Shanghai SVA NEC Liquid Crystal Display Co. Ltd, is backed by NEC Corp. of Japan and SVA Co. Ltd of China. The venture has a capacity of 52,000 panels per month and also plans to build a sixth-generation TFT-LCD plant within the next two years at a cost of more than $1.5 billion, according to the report.

Another Chinese company, Beijing BOE Optoelectronics Technology Ltd, is expanding its capacity within its current fifth-generation line from 60,000 panels per month to 85,000 panels per month. The expansion plan is estimated to cost $87 million. BOE is also raising funds for a seventh-generation TFT-LCD plant, according to the report.

- Mark LaPedus
EE Times

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