Sony Gets Second Manufacturing Base of Low-Temperature Polysilicon TFT LCD Display Panel for Mobile-Products

Sony Corporation and Chi Mei Optoelectronics have agreed on the basic terms of a transaction whereby Sony will acquire CMO' s wholly-owned Japanese subsidiary, International Display Technology.
Sony and CMO have agreed that Sony will purchase all the shares of a new company spun-off from IDTech. Sony plans to produce low-temperature polysilicon thin film transistor liquid crystal (LTPS-TFT-LCD) display panels in the new company. The acquisition price has been set at approximately 18.5 Billion Japanese Yen for all the shares of the new company and includes purchase of all of the production equipment, facilities, and personnel at IDTech's plant in Yasu-shi, Shiga prefecture, Japan.

IDTech is a world leader in the design, development, and production of amorphous silicon thin film transistor liquid crystal (a-Si TFT LCD) displays. Among IDTech's leading edge products are the world's highest resolution TFT LCDs for medical displays, wide-angle view in-plane switching (IPS) display monitors, twisted nematic LCD notebook displays, and specialized TFT substrates.

The IDTech facility will complement Sony's present LTPS-TFT-LCD manufacturing base, which was established in 1997 as the STLCD Corporation, a joint venture between Sony and Toyota Industries Corporation, for the production of LTPS TFT LCD display panels for mobile products, such as cell phones and cameras. A second production line at STLCD was completed in 2002 in which production was expanded to 40,000 (600x720mm) base plates per month; Sony expects to continue the expansion of production and its acquisition of IDTech is part of those plans.

Sony will make an investment for equipment and facility modification of approx. 27 Billion Yen level, leading to building a manufacturing facility with production capability of 25,000?i550x650mm?j base plates /month. This will lead to further enhance the business in the field of LTPS-TFT-LCD display panel for use in mobile products, such as mobile phones. The name of the new company is due to be decided by the end of Mar.2005, when the necessary procedures for the acquisition and new company formation is planned to be completed. The commercial base mass production for LTPS-TFT-LCD display panel is scheduled to start from Apr. 2006.

CMO acquired IBM's Third Generation TFT LCD plant in 2001, and formed IDTech in a precedent-setting Taiwan-Japan joint venture. From this acquisition, CMO has successfully leveraged IDTech's leading technology, its skilled workforce, advanced management system, global logistics system and profitable customer base, which provided a strong starting base for CMO's LCD production in a very competitive industry. Since that time, CMO has been aggressively building its next generation fabs. in Taiwan, including a 5.5 Generation fab., which will begin mass production this year. Because of the fact that the new fabs. will operate with new state-of-the-art equipment and greater efficiency, to better manage its total production capacity, CMO ultimately agreed to sell IDTech's Yasu fab. to Sony.

CMO's Chairman, Mr. Liao Ching Siang stated:
“The sale of IDTech will in no way lessen our commitment to our customers, rather it will improve our customer relations because of improved efficiency. The sale to Sony was based on CMO and Sony's strong business relationship, particularly in the area of LCD business. We are glad we can help Sony to strengthen its production capacity in the mobile devices business. We firmly believe that IDTech's production capabilities together with Sony's world-class management and technology will fulfill Sony's plans.”

Sony's Executive Deputy President and COO, Dr. Ryoji Chubachi stated:
”LTPS-TFT-LCD display panels are used in various mobile products such as video cameras, digital still cameras and mobile telephones and we expect the market to dramatically grow from now onwards as well. The basic agreement with CMO and IDTech this time leading to the acquisition of Yasu Business Facility, IDTech will further expand Sony's mobile display production and will strengthen the business. Through the succession of the personnel asset of Yasu Business Facility, we target to promptly launch Sony's 2nd manufacturing base following STLCD Corporation, leading to the supply of excellent products to customers in the world.”

This agreement has been well-accepted by Toyota Industries Corporation as well, and initial capital participation by approximately 20% is being considered. From the cooperation by Toyota Industries Corporation, Sony will target the technology convergence of the new company and STLCD Corporation, leading to the build-up of an enhanced quality and production efficiency in the LTPS-TFT-LCD display panels production line to better satisfy the customers' needs.

Related stories:

Scientists Link Unmanned Vehicles with Network for Homeland Security
Researchers at The University of Alabama in Huntsville have developed unmanned aerial and ground vehicles, but the real innovation is how these vehicles can work together with an information network to provide real-time data to first responders and emergency personnel.
In Brief: Samsung, Sony to expand TV panel output
Sony and Samsung have signed an agreement for an additional production line for TFT-LCD television panels in South Korea.
Government video expo to show cutting edge
For three days, from Nov. 30 - Dec. 1, the Washington, DC Convention Center and the Federal Government are going to be treated with a display of the latest and greatest tools for digital signage, collaborative conferencing, camera technology and more at the Eighth Annual Government Video Expo. The purpose of the expo is for industry experts to get together and showcase the latest and greatest in video technology and its application to Federal and local government.
Toshiba unveils first next-generation HD DVD drive for laptops
Japanese electronics giant Toshiba said Tuesday it has developed the first laptop computer with a next-generation HD DVD drive despite a looming format war with a rival group led by Sony.
Cinema goes digital
The future of cinema is digital: At the International Broadcast Convention IBC in Amsterdam (September 9 to 13, 2005), the Fraunhofer Digital Cinema Network will be presenting the latest developments in the field of Digital Cinema.
Sony Expands SXRD Rear Projection HDTV Line With 50 AND 60-Inch Grand WEGA TVs
On the occasion of celebrating the production of the one millionth rear projection Grand WEGA micro-display television at its technology center here in southwestern Pennsylvania, Sony Electronics today introduced two new sets in the line based on the acclaimed Silicon X-tal (Crystal) Reflective Display (SXRD) technology delivering full 1920 x 1080 high-definition resolution.
S-LCD Begins Shipment of 7th Generation TFT LCD Panels
S-LCD Corporation today began shipment of mass production Generation 7 amorphous TFT LCD modules to its parent companies, Samsung Electronics and Sony.
S-LCD was established on April 26th 2004 by an equal joint investment by Samsung and Sony dedicated to the manufacturing of amorphous TFT LCD panels for LCD TVs targeting mass production to begin in the first half of 2005.
Sony to establish ST Mobile Display Corporation
Second Manufacturing Base for Low-Temperature Polysilicon TFT LCD Panels for Mobile Products

Sony Corporation today announced the establishment of "ST Mobile Display Corporation". This follows Sony's purchase of the LCD panel manufacturing business previously owned by International Display Technology (hereafter IDTech). The new company will produce low-temperature polysilicon thin film transistor liquid crystal displays (hereafter LTPS-TFT-LCD) panels for mobile products.

News discussion:

Technology news