TOKYO - JAPAN'S Sharp Corp said it is considering cutting LCD panel production as a global downturn hits LCD TV demand, but will press ahead with plans to spend $3.9 billion (S$5.9 billion) to build a cutting-edge panel factory.
By lowering output, the world's third-largest LCD TV maker would join its rivals including market leader Samsung Electronics, which said last month it was 'adjusting' production amid sluggish demand for TV and monitor screens.
Sharp said on Monday details have not been decided, but the Nikkei business daily reported on Saturday the company will start output reduction in mid-December, and utilisation rates at its two flagship plants in Japan could fall below 90 per cent.
The plants, which are currently running at full capacity, have combined capability to make about 22 million units of 32-inch LCD panels a year.
A Sharp spokesman said, however, nothing has been changed in its plan to invest 380 billion yen (S$5.98 billion) to build an advanced LCD panel plant in western Japan by March 2010.
The new factory will use cost-efficient glass substrates that yield more panels per glass than existing, smaller glass substrates, helping it offer LCD panels and TVs at competitive prices. -- REUTERS
