Sharp to increase LCD capacity by 20 percent

The company will increase the maximum number of glass substrates that can be processed at its Kameyama No.1 plant from 51,000 per month to 60,000 per month beginning in March, it said in a statement. Each sheet can be used to make several LCD panels, which are then used by Sharp in its own flat-panel televisions or sold to other TV makers for use in their sets.

The growth in consumer demand for LCD TVs is behind the increase, which will cost the company Ľ15 billion (US$128 million) in investment, it said. Sharp expects worldwide demand for LCD TVs to jump 80 percent this year, from 20 million units in 2005 to 36 million units in 2006.

A second LCD panel plant is currently under construction alongside the No.1 factory and should begin operation in October this year. It will be able to handle 30,000 glass substrate sheets per month by March 2007. Together, the two factories will be able to process up to 90,000 glass sheets per month when they hit full capacity. This is equivalent to 20 million panels for 32-inch televisions per year, assuming maximum yield.