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Nation plays catch-up on LCD panels
  From:CEF

  CHINA should speed up building advanced LCD panel factories to catch up with international rivals, industry officials said during a forum in Shanghai yesterday.

  Capacity of manufacturing advanced LCD (liquid crystal display) panels, used to make large-screen TVs, can meet 50 percent of the demand globally, which leaves opportunity for Chinese firms, said Gu Zhihua, director of the FPD (flat panel display) research center at Fudan University.

  "There is no time for us to wait and see, otherwise we will completely lose the opportunity. The government should strengthen support for the sector," Gu said during China FPD Manufacturing Forum 2007, which was held during the China Electronics Fair.

  Five years from now, the capacity to make large LCD panels - mainly met by Japanese and South Korean firms - will meet 75 percent of the demand, so Chinese firms should act now, according to Gu.

  China's three top LCD panel makers SVA, BOE and IVO announced early this year they would consolidate the business and co-invest to build advanced LCD panel lines, scheduled to finish in the middle of this year. However, the schedule has been delayed twice, and the firms haven't announced further details.

  Chinese firms can only produce so-called fifth-generation LCD panel manufacturing lines, three to five generations behind international rivals like Samsung and Sharp. Therefore, Chinese TV makers have to import panels to meet the market demand.

  "Large LCD panels are in shortage and the situation will continue in the first half of 2008," Sun Xinguo, the research director of China Video Industry Association, said during the forum.

  China sold a total of 21.14 million FPD TVs, more than 90 percent being LCD TVs, in the first nine months, a 47.3-percent growth year on year, according to Sun who cited figures from the Ministry of Information Industry.


Source:Shanghai Daily

 
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