Sharp eyes new LCD plant with larger motherglass

In this file photo a Sharp Corp employee looks at the company's 45-inch LCD television in Tokyo June 14, 2004.

TOKYO (Reuters) - Sharp Corp. (6753.T), the world's third-largest LCD TV maker, said on Friday it would likely build a new LCD panel plant in Sakai, Osaka prefecture, and the final decision will be made by the end of July.

Sharp Chairman Katsuhiko Machida also said the company, which is using cutting-edge eighth-generation motherglass at its flagship LCD plant in Mie prefecture, western Japan, is looking into the possibility of using even larger glass at the new plant.

The comment follows a report by the Nikkei business daily on Saturday that Sharp has decided to build a $4 billion LCD (liquid crystal display) plant in Sakai to take on larger rivals Sony Corp. (6758.T) and Samsung Electronics Co. Ltd.

(005930.KS).

"We naturally need to think about larger glass," Machida told reporters. "Introducing larger glass is technologically challenging. But that's how we can differentiate ourselves."

Larger motherglass yields more panels per glass, helping panel and TV makers cut costs and offer their products at competitive prices.

Building an advanced plant is important for Sharp's competitiveness as an LCD joint venture between Sony and Samsung plans to bring onstream its own eighth-generation plant this summer, matching Sharp's efficiency in making large-sized panels.

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