Sharp Takes Lead In Next-Gen LCD Fab Race
TOKYO — Undaunted by a recent slump in the LCD industry, Japan-based Sharp Corp. has taken the lead in the large fab derby by opening a 8th generation fab in Kameyama.
The fab will make a glass substrate measuring 2160 by 2460 mm, from which eight 45-inch panels or six 50-inch class planes can be cut.
"We are ready to fight now," said Katsuhiko Machida, president of Sharp Corp., during the opening of the fab. "We badly needed the 8th generation fab to be price competitive," he said.
Sharp had fallen behind rivals in next-generation fabs. It took the lead in introducing a 6th generation line. However, but Samsung and Sony, through their joint venture, S-LCD Corp., leapfrogged Sharp with their 7th generation line in July 2004.
Sharp had the largest share in the world LCD TV market last year, and still has the largest share in the Japanese LCD TV market, 41.4 percent on a value basis the first quarter of this year, according to DisplaySearch. But it has been fighting an uphill battle in overseas markets, surrendering the top position to Sony, which is focusing on larger-sized TVs.
In the global LCD TV market, Sony had a 15 percent share on a value basis and Samsung 13.9 percent, both ahead of Sharp with a 12.7 percent share.
Machida admitted earlier this year that its production capacity was unable to meet demand. Thus, Sharp moved up the opening of Kameyama Fab 2 by two months.
Sharp invested ¥150 billion (about $1.3 billion) to build the 8G Fab2. Its initial monthly capacity is 15,000 glass substrates. The capacity will be doubled to 30,000 substrates monthly by next March.
Already, Sharp is looking beyond the 8th generation fab. A 10th generation fab using a glass substrate measuring about 3050 by 2850 mm is one possibility. "Engineers say that the 10th line is technically attainable," said Machida. The 10G mother glass can yield 60-inch class panels.
Sharp is studying the 10th generation fab to compete against rear-projection TVs that now dominate the 60-inch category.