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LEAD: Matsushita, Hitachi to triple LCD output capacity+(Japan Economic Newswire Via Thomson Dialog NewsEdge)TOKYO, May 31_(Kyodo) _ (EDS: UPDATING WITH MATSUSHITA, HITACHI ANNOUNCEMENT) Matsushita Electric Industrial Co. and Hitachi Ltd. jointly said Wednesday they will triple the liquid crystal display panel production capacity at a joint venture in Mobara, Chiba Prefecture. Consequently, the annual capacity at IPS Alpha Technology Ltd., the venture the two firms set up last year in cooperation with Toshiba Corp., will become the equivalent of 5 million 32-inch LCD panels, the two said. The two companies will spend a combined 80 billion yen to bolster their LCD panel production at the venture and build a new factory in Eastern Europe, they said. The two firms have decided to boost their LCD output capacity to fend off competition from rivals such as Sony Corp. and Sharp Corp., which are also moving to drive up their production capacity, officials at the two firms said. But Toshiba, a partner at the trilateral venture, will refrain from joining the greater investment plan this time, partly because it will put priority on developing the next-generation flat-screen SED TV in conjunction with Canon Corp., industry officials said. SED TVs, short for surface-conduction electron-emitter display TVs, will hit the shelves in fall 2007 or thereafter. As for production at the Chiba venture, Matsushita and Hitachi had planned to increase the annual LCD panel capacity to 2.5 million units in April 2007, the two firms said. But the two have decided to bring forward the timing of the implementation of the 2.5 million-unit plan to January of that year, while planning to hike the annual capacity to 5 million during the second half of 2007, they said. Apart from the plan for the Chiba venture, the two will build a joint LCD panel factory in Eastern Europe to enhance their LCD panel business for the European market, they said. Hitachi and Matsushita have developed and manufactured plasma panel TVs to cash in on the demand among consumers preferring larger screens, while putting emphasis on LCD panel TVs for those preferring small and midsize screens. In addition to the greater LCD panel TV production, the two plan to enhance production of plasma display TVs in view of the prospect that plasma TVs will become mainstream products on the flat-screen TV market, they said. Among their rivals, Sony revealed a plan in April to build a new LCD factory in South Korea together with Samsung Electronics Co. at the combined expense of 240 billion yen. Sharp is planning to conduct 200 billion yen investments to raise its LCD production capacity. |