Sharp Will Build New LCD TV Plant

Large liquid crystal display screens were among the most intriguing video technologies demonstrated at the 2002 Consumer Electronics Show.

Although unable to achieve absolute black levels, and plagued by motion artifacts, prototypes from Samsung and Sharp Electronics looked very promising, even alongside similar sized plasma displays. Representatives from both companies told us that their engineers are hard at work improving the performance of LCD screens and expect that eventually they will outperform plasma units—perhaps even by next year's CES.

LCD has come a long way from its origins in calculator and wristwatch read-outs. Two years ago at CES, Sharp debuted the world's first high-definition LCD monitor: the 28" LC-28HD1, capable of 720p/16:9 images. This year, Samsung unveiled the world's first 40" LCD television set. It's a technology whose appeal cuts across all demographics—even the most casual TV viewers are excited about flat screen displays. With their thin depth and light weight, LCD screens should prove enormously popular once the bugs are worked out. Prices should drop—and sales take off—once larger sets hit the market in quantity.

Sharp is betting heavily on this probability. On February 14, the company announced an ambitious plan to build a new factory in western Japan dedicated to manufacturing LCD television sets. The new plant will build LCD monitors and television sets 25" and larger, including everything from screen fabrication to final assembly.

Sharp will invest a minimum of $209.3 million (¥28 billion) to get the plant in operation. Construction will begin this coming September, and full-scale LCD TV production is projected to begin in May 2004, according to the announcement.

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