Sharp ramps up LCD output by 80%

By Staff and wire reports

TOKYO, Japan (CNN) -- Sharp plans to accelerate production of liquid crystal displays for PC monitors and flat panel TVs to 5.6 million units in fiscal 2001.

Taking advantage of an anticipated supply shortage, Japan's top LCD maker will boost production by 80 percent.

Sharp is targeting LCD sales of $3.8 billion (440 billion yen) in fiscal year 2001, with an anticipated 6 percent year-on-year growth.

Volume boost

With large-screen LCD prices dropping up to 50 percent from the previous year, Hitachi and Toshiba are shifting production to smaller displays for mobile devices. NEC will withdraw from LCD production.

As rival Japanese firms reduce their LCD output, Sharp will boost production at its Mie Prefecture plant to 2,400 a day in July from the current 1,500 a day volume, according to the Nihon Keizai business daily.

By the end of the year, Sharp will pick up the pace further to 3,000 LCDs a day. The electronics giant also plans to consolidate all large LCD production at the Mie plant in a move slash production costs by 15 percent

Sharp is targeting a more than 50 percent rise in revenues from large LCD panels to $1.64 billion in 2001-02.

Sharp traded slightly higher in morning trade on Friday, up 1.38 percent at 1,837 yen.

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