Panasonic to Build $2.8 Billion LCD Plant in Japan

Panasonic will also acquire almost all the shares of IPS Alpha Technology, an LCD panel manufacturing joint venture between Panasonic, Hitachi and Toshiba.

Panasonic is planning to invest ¥300 billion (US$2.8 billion) in a new LCD manufacturing plant in western Japan, it said Friday.

The investment was announced simultaneously with a deal that will see Panasonic acquire almost all the shares of IPS Alpha Technology, an LCD (liquid crystal display) panel manufacturing joint venture between Panasonic, Hitachi and Toshiba, and marks the latest chapter in an industry-wide realignment of the LCD business in Japan.

The new plant will be built in Himeji and will be a so-called eighth generation production line. That means it can process sheets of mother glass -- the large glass panels on which several LCD screens are made -- of 2.2 meters by 2.4 meters. Such sheets are best suited to production of 40-inch panels because eight screens can be made with minimal waste.

These aren't the monster panels in which rivals are currently investing billions of dollars, but that's because Panasonic is relying on PDP (plasma display panel) screens for its TV sets that are over 40 inches in size.
While Panasonic will pay for the new factory it will officially be owned by IPS Alpha Technology. Hitachi Display is currently the largest shareholder in the company with a 50 percent stake and Panasonic is second with a 30 percent share.