Concern over Big Investments in Thin Panel TV Production (HIT, MC, PIO)

After the latest round of news regarding huge capital investments in thin panel TV production plants there is increased concern over the health of companies like Fujitsu, Hitachi (HIT), Matsushita Electric Industrial (MC), Pioneer (PIO) and Toshiba.

There’s no question that huge demand exists for thin panel TVs whether plasma or LCD. However, there’s a huge question looming as to how much further and faster prices on these TVs will fall as they continue to be discounted at retail stores to attract more consumers. At the same time Korean rivals such as Samsung and LG are also investing large amounts of capital in order to compete for greater global market share.

Below is a summary of the amount invested and number of units that can or will eventually be produced monthly at respective factories (data courtesy of Ryukyu Shimpou Shimbun):

* PLASMA -- Matsushita Amagasaki Factory 250,000 units, 95 billion yen or US$812 million; Matsushita (forthcoming) New Amagasaki Factory 500,000 units, 160 billion yen or US$1.37 billion; Fujitsu-Hitachi at Miyazaki 200,000 units, 85 billion yen or US$726 million

* LCD -- Sharp Kameyama 1st Factory to be increased to 480,000 units, 15 billion yen or $128 million; Sharp Kameyama 2nd Factory 120,000 units, 150 billion yen or US$1.28 billion; IPS Alpha Technology (joint capital sharing venture between Hitachi, Toshiba, Matsushita, and others) with factory located in Chiba Prefecture approximately 200,000 units, 110 billion yen or US$940 million.

Also see these two posts covering Matsushita and Sharp's investments:

Matsushita Electric Industrial Aims to Grab Plasma Market Share Amidst Intense Competition (MC)

Sharp to Boost LCD Panel Capacity in Expectation of Robust Demand (MC)

* Figures in US$ were convereted from yen using an arbitrary conversion rate of Y117/US$1.