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[March 08, 2004]
Fujitsu Hitachi Plasma Display to Construct New PDP Plant in Miyazaki, Japan
Fujitsu Hitachi Display Ltd. (TSE: 6702; hereafter FHP) announced that it will construct a new facility for the production of plasma display panels (PDPs) adjacent to its existing Miyazaki factory in southern Japan. The move anticipates major growth in demand around 2006 and 2007 for large-screen PDPs used in flat-screen TVs and commercial displays. Construction of the new factory (called Plant #3), which will have a maximum production capacity of 150,000 units per month, is slated to begin in early 2005, with initial volume production of 50,000 units per month to commence by the end of that year. At the same time, FHP is accelerating plans to increase production capacity at its existing facility (Plant #2) from 50,000 to 100,000 units per month by January 2005, four months ahead of original schedule. These aggressive expansion moves will bring combined maximum production capacity at the Miyazaki complex to 250,000 units per month - 3 million units on an annual output basis - by 2007, making it among the world's largest PDP manufacturing facilities.
Amidst the shift to digital broadcasting and the proliferation of DVDs and other digital content, PDPs - with their large screen size, thin profile and excellent digital interface - are benefiting from explosive demand in markets for flat-screen television sets and public information monitors. Unlike LCDs or projection-type
displays, PDPs are self-luminescent devices that have won wide acclaim for their superior ability to reproduce the subtlety and emotional depth of original video imagery. Going forward, several factors are expected to drive even stronger growth in the flat panel TV market, including expansion of the service area for digital broadcasting in Japan, popularization of high-definition TV in North America, and upcoming high-profile televised events such as the Athens Olympic Games this summer and the FIFA 2006 World Cup in Germany. FHP predicts that these factors will dramatically increase the size of the PDP market from 1.4 million units in 2003 to as many as 10 million units in 2007.
FHP, which specializes in the development and manufacture of large-screen PDPs, was established in 1999 as a joint venture of Fujitsu Limited and Hitachi, Ltd. It has a current production capacity of 50,000 units per month, making it among the world's largest PDP manufacturers. Leveraging proprietary technological innovations such as the Alternate Lighting of Surfaces (ALIS), extended ALIS (e-ALIS), and Technology of Reciprocal Sustainer (TERES) methods*, FHP supplies cost-competitive high-resolution PDP modules to many of the world's leading TV set manufacturers.
Significantly expanding manufacturing capacity at Miyazaki, the new Plant #3 will be used to produce high definition PDP modules employing the ALIS & TERES methods, as well as the e-ALIS methods - all with enhanced brightness and power dissipation performance. In conjunction with these expansion plans, FHP expects to hire
approximately 1,000 new employees, mainly engineers and operators, by 2007.
[New Manufacturing Facility (Plant #3) at a Glance]
Location: Kunitomi-cho, Higashi-Morokata-gun, Miyazaki-ken, Japan
(Adjacent to current FHP Miyazaki facility)
Building Area: 88,800 sq meters; two floors (partly three floors)
Manufacturing Capacity: maximum 150,000 units/month (output basis)
Building construction: to begin early in 2005
Volume production: to commence by end of 2005
Projected capital investment: 75 billion JPY (at time of maximum
capacity)
[Planned Overall Capacity at Miyazaki Complex]
(Sep. 2003)(Jun. 2004)(Jan. 2005)(End of 2005) (2007)
Plant#2 50k/month 70k/month 100k/month 100k/month 100k/month
Plant#3 50k/month MAX150k/month
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Total 50k/month 70k/month 100k/month 150k/month MAX250k/month
Glossary and Notes:
* ALIS (Alternate Lighting of Surfaces) is an innovative method that alternately displays odd and even lines at high speeds. This technology makes it possible to create high-resolution images using about the same number of electrodes as used in conventional VGA technology.
* e-ALIS (extended ALIS) method further advances the ALIS method, enabling progressive display and high brightness.
* TERES (Technology of Reciprocal Sustainer) method cuts conventional drive voltage in half.
* ALIS & TERES is a registered trademark of Fujitsu Hitachi Plasma Display Ltd.
* Plant#1 at Miyazaki is being used for module assembly and R&D purposes.
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