Fujifilm Establishes JV with SVA Electron to Manufacture Color Filters, TFT LCDs in Shanghai
Tokyo, Japan, Aug 26, 2006 - (JCN) - Fuji Photo Film and major Chinese home appliance and electronic components company SVA Electron Co., Ltd. anounced plans on August 22 to establish a JV called SVA-Fujifilm Opto-Electronic Materials Co., Ltd. to manufacture color filters (CFs) for TFT liquid crystal displays in Shanghai.
SVA-Fujifilm will be the first company in China to manufacture CF for large-size TFT LCDs. The new company will supply large-size CFs used in laptops, monitors, and large screen TVs for the rapidly growing Chinese LCD market, mainly through SVA-NEC, a member of the SVA group,
The new company will be capitalized at US$ 100 million at an investment rate of 75% for SVA and 25% for Fujifilm. The total capital investment is expected to be US$ 270 million. The production line will use 5th generation glass substrate (1,100 x 1,300 mm), and production capacity based on glass substrate used is expected to be 70,000 units per month. Production is scheduled to begin in November 2007. When production begins on a mass scale, the company will have employed approximately 500 workers.
In addition, Fujifilm will invest approximately 4 billion yen to establish a new R&D Division within Fuji Photo Film China Investment Co., Ltd., its subsidiary in China. The new R&D Division will conduct research on new products and LCD-related technology focusing primarily on CF. It will contribute to the development of LCD technology in China and will hasten the start-up of mass production in the new company.
Fujifilm has positioned production of materials for LCDs and other flat panel displays as a core business and will sustain its investment in R&D and enhanced production capacity. The SVA group is a leading Chinese company in the fields of telecommunications equipment, home appliances, displays, and electronic components. With the partnership, Fujifilm said it will apply its resources to expand its share of the Chinese flat panel display materials market.
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