lcd panel nec akita factory

TOKYO, March 4 (Reuters) - Japan"s NEC Corpsaid on Wednesday it would close a liquid crystal display plant in southern Japan in December, as the company faces a $3 billion annual loss amid a global glut in the LCD sector.

The factory, owned by NEC unit NEC LCD Technologies Ltd, employs 370 workers and has a monthly production capacity of 86,000 industrial-use LCD panels, mainly small to mid-size panels for products such as point-of-sale terminals and mobile devices.

NEC LCD Technologies said it will integrate production into another plant in Akita, northern Japan, and plans to halve its work force to 600 by March 2010 through voluntary retirement.

NEC said in January it was looking for ways to get out of the industrial LCD display-related business and cut its group-wide work force by 20,000 people by March 2010.

NEC shares gained 3.6 percent to 231 yen by 0521 GMT, against a 0.9 percent rise in the benchmark Nikkei average. ($1=98.44 Yen) (Reporting by Taiga Uranaka and Sachi Izumi; Editing by Michael Watson)

TOKYO, March 4 (Reuters) - Japan"s NEC Corpsaid on Wednesday it was considering closing a liquid crystal display plant in southern Japan, as the company faces a $3 billion annual loss amid a global glut in the LCD sector.

The factory, owned by NEC LCD Technologies Ltd, employs 370 workers and makes industrial-use LCD panels, mainly small to mid-size panels for products such as point-of-sale terminals and mobile devices.

NEC said in January that it was looking for ways to get out of the industrial LCD display-related business and cut its groupwide workforce by 20,000 people by March 2010.

NEC shares were up 2.7 percent at 229 yen as of 0415 GMT, outperforming a 0.3 percent gain in the benchmark Nikkei average. (Reporting by Taiga Uranaka and Sachi Izumi; Editing by Hugh Lawson)

NEC Corp. said Friday it will cooperate with Tianma Micro-electronics Co. in the liquid crystal display business by handing over a 70 percent stake in its wholly owned LCD panel unit to China’s largest maker of small and midsize panels.

The move, to take place around July, is in line with the NEC’s efforts to exit unprofitable operations and focus on more promising business, including cloud computing and the production of batteries for electric cars, NEC said.

The subsidiary, NEC LCD Technologies Ltd., based in Kawasaki, will be renamed after the Chinese company acquires it, but the workers will keep their jobs.

In face of weakening LCD (Liquid Crystal Display) demand, NEC plans to transfer and consolidate operations in its LCD plant located in Kagoshima, southern Japan, to its Akita plant by year-end 2009, with an attempt to streamline its LCD manufacturing operations, the Jiji Press reported on March 4.The company will be reduced the current workforce of 1,190 to about 600 by the end of March 2010, and workers will be given a choice between transferring to the Akita plant or retiring through a voluntary retirement program. This layoff and plant shutdown decision is part of the company"s plan - announced in January 30, 2009 - to cut more than 20,000 jobs, including 10,000 full-time workers, by March 2010, according to the Wall Street Journal.

Tianma America, Inc.(TMA) A leading provider of small to medium size display solutions to the Americas, utilizing cutting edge technologies from Tianma Microelectronics and Tianma Japan, Ltd. (TMJ), coupled with state-of-the-art manufacturing resources of the Tianma Group, TMA offers a comprehensive range of Liquid Crystal Display (LCD) products and associated technologies. Products include passive character and monochrome, a-Si and LTPS-TFT LCD, as well as AMOLED products with standard product sizes ranging from 1-inch to 21.3-inch and resolutions from QVGA to QSXGA for standard 4:3 aspect and from WQVGA to HD for wide aspect.

In 2014, Tianma’s shipments of small and medium size modules，a-Si display products for smart phones ranked first among the global panel factories. Our market share for high-end medical devices and HMI products also ranked first worldwide. Many customers have chosen to release their new products globally equipped with Tianma display products. Tianma is committed to continuous innovation, better customer service and supports different requirements for applications in the field.

Tianma has a clear technological and production advantage in the small and medium size display market where it has enjoyed a strong market presence over the years. Tianma has established a National R&D Laboratory on TFT - LCD Key Material and Technology, a National Enterprise Technology Center, and a post-doctoral workstation to enhance the knowledge and technical expertise of our employees. We also undertake multiple major national projects from the National Development and Reform Commission, Ministry of Science and Technology, and Ministry of Industry.

We have a comprehensive production line combination including G4.5/G5 a-Si TFT – LCD, G5.5 LTPS TFT - LCD and G5.5 AM-OLED, plus two G6 LTPS TFT-LCD lines, enabling Tianma to achieve the highest possible level of product quality and supply capability. Tianma was the first to start mass production from a G5.5 LTPS production line in China.

We have established manufacturing facilities in Shenzhen, Shanghai, Chengdu, Wuhan, and Xiamen, China as well as in Akita, Japan. In addition, a global sales and technical support network has been put in place that includes offices in the United States, Germany, South Korea, Taiwan, Hong Kong, etc. to ensure seamless global support to our customers.

According to a variety of wire sources, NEC factories in both the Iwate and Fukushima prefectures have been closed because of electricity and water supply problems. Fujitsu announced on Monday that it shut down 10 plants. Hitachi has closed down six factories. Canon has closed eight factories, and Nikon has closed four facilities.

Through its U.S. operation, Sharp issued a statement expressing "deepest sympathy to all the people affected by this earthquake. There are no extensive damages to our buildings or production facilities in Japan including our plant located in Yaita-city, Tochigi prefecture." Its LCD panel production facilities located in Sakai-city, Kameyama-city, Taki-cho and Tenri-city are operating normally.

• Akita Epson Corporation (Yuzawa, Akita Prefecture). Operations have been suspended due to a power cut caused by the earthquake. Damage to the buildings and production facilities were minimal. While carefully confirming plant safety and electricity power supply, Epson resumed operations from March 14.

Commenting on the effect of the earthquake and subsequent events on the LCD panel manufacturing sector in Japan, yesterday David Hsieh, vice president, greater China market, DisplaySearch, issued an email blast saying that “Some TFT LCD factories located in the impacted area, including Hitachi Display (Chiba prefecture), NEC’s Gen 2 (Akita prefecture), Toshiba’s Fukaya and Ishikawa factories, as well as Epson’s Gen 2, were reportedly not damaged by the earthquake. But it is very likely that these factories have paused production to gauge the impact and calibrate the facilities. These factories are all focused on small/medium panels, and their share in the industry is very minor. We are assuming that there will be no major impact to the TFT LCD industry as a result.”

“The majority of the TFT LCD industry is not located in the area most heavily impacted by the earthquake,” Hsieh said. "Sharp’s Gen 8 and Gen 10, Panasonic LCD’s Gen 8, and NEG’s glass tanks are all located in the Kansai area, which does not appear to have been affected by the earthquake. Key LCD component makers, like Nitto Denko, DNP, Sumitomo, Toppan, and Corning, have located most of their facilities in west Japan. These LCD and components clusters do not appear to have been affected.”

When the damage has been repaired — when the Japanese plants that produce not just the chips that power the worlds’ great products, but great finished products as well — are back up full-speed, we’ll all breathe a sigh of relief. Because the Japanese electronics industry is the economic backbone and the pride of a great country, that stands alongside this one, in a perennial striving toward excellence in design, process, and go-to-market execution. Godspeed to our Japanese colleagues in the commercial AV, projection, flat panel display, digital signage, semiconductor, cellphone, and smartphone industries, as they bounce back quickly, and come back even stronger than before.

According to a variety of wire sources, NEC factories in both the Iwate and Fukushima prefectures have been closed because of electricity and water supply problems. Fujitsu announced on Monday that it shut down 10 plants. Hitachi has closed down six factories. Canon has closed eight factories, and Nikon has closed four facilities.

Through its U.S. operation, Sharp issued a statement expressing "deepest sympathy to all the people affected by this earthquake. There are no extensive damages to our buildings or production facilities in Japan including our plant located in Yaita-city, Tochigi prefecture." Its LCD panel production facilities located in Sakai-city, Kameyama-city, Taki-cho and Tenri-city are operating normally.

• Akita Epson Corporation (Yuzawa, Akita Prefecture). Operations have been suspended due to a power cut caused by the earthquake. Damage to the buildings and production facilities were minimal. While carefully confirming plant safety and electricity power supply, Epson resumed operations from March 14.

Commenting on the effect of the earthquake and subsequent events on the LCD panel manufacturing sector in Japan, yesterday David Hsieh, vice president, greater China market, DisplaySearch, issued an email blast saying that “Some TFT LCD factories located in the impacted area, including Hitachi Display (Chiba prefecture), NEC’s Gen 2 (Akita prefecture), Toshiba’s Fukaya and Ishikawa factories, as well as Epson’s Gen 2, were reportedly not damaged by the earthquake. But it is very likely that these factories have paused production to gauge the impact and calibrate the facilities. These factories are all focused on small/medium panels, and their share in the industry is very minor. We are assuming that there will be no major impact to the TFT LCD industry as a result.”

“The majority of the TFT LCD industry is not located in the area most heavily impacted by the earthquake,” Hsieh said. "Sharp’s Gen 8 and Gen 10, Panasonic LCD’s Gen 8, and NEG’s glass tanks are all located in the Kansai area, which does not appear to have been affected by the earthquake. Key LCD component makers, like Nitto Denko, DNP, Sumitomo, Toppan, and Corning, have located most of their facilities in west Japan. These LCD and components clusters do not appear to have been affected.”

When the damage has been repaired — when the Japanese plants that produce not just the chips that power the worlds’ great products, but great finished products as well — are back up full-speed, we’ll all breathe a sigh of relief. Because the Japanese electronics industry is the economic backbone and the pride of a great country, that stands alongside this one, in a perennial striving toward excellence in design, process, and go-to-market execution. Godspeed to our Japanese colleagues in the commercial AV, projection, flat panel display, digital signage, semiconductor, cellphone, and smartphone industries, as they bounce back quickly, and come back even stronger than before.

Sharp NEC Display Solutions incorporates both Sharp and NEC brands of display products. Including desktop, 4K and 8K UHD large format, video wall, dvLED, collaboration and interactive products, Sharp/NEC offers the widest portfolio of displays available. Understanding that every market and environment has unique requirements, Sharp/NEC prides itself on being your partner, delivering customized solutions to match your needs.

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