NEC & SVA established TFT LCD joint venture

Shanghai SVA NEC Liquid Crystal Display Co., Ltd. will plan, develop and manufacture TFT LCD panels and modules for PCs, monitors and TVs, while focusing on China’s huge market as its main sales target. The joint venture company is the first facility in China that will be capable of handling every aspect of TFT LCD manufacturing from the initial array and cell process to the final production line phase.

The new company’s capital totals 50 billion yen (controlling share, SVA Group: 75%, NEC: 25 %.). With capital expenditure forecast at 85 billion yen, a state-of-the-art fifth-generation production line (glass base: 45 thousand sheets per month) with a large-size glass substrate of 1,100mm x 1,300mm, is scheduled to begin operation in October, 2004. The facility will employ an initial workforce of approximately 1200 staff.

In April, 2003 NEC separated its LCD business by way of corporation separation and established a new company, NEC LCD Technologies Ltd. (NEC LCD Technologies). NEC LCD Technologies develops, designs, manufactures and sells color LCDs.

The company focuses on providing TFT LCD solutions designed to meet the requirements of industrial and high-value added display applications. For commodity products, NEC aims to strengthen its business model by carrying out product development, production and sales through the new joint venture company in China.