China's domestic Liquid Crystal Display (LCD) producers should focus on the extending development of current fifth generation LCD production lines, instead of hurrying up the construction of new LCD generations to catch up with global technology trends.

This warning was pronounced by Ministry of Information Industry officials when some of China's LCD producers, including Shanghai SVA-NEC Liquid Crystal Display Co Ltd and Beijing Boe Technology Group Co Ltd, planned to update their production line to the sixth generation amid global technology upgrades.

The current fifth generation LCD production line is able to produce small-sized LCD panels of 15 inches to 23 inches, while the production of large-sized LCD panels of over 30 inches requires the sixth generation or more.

The LCD industry has been heavily hit by a continuous price plunges because of a surplus of the LCD products since last year. Many of the world's giant LCD product manufacturers, including Samsung and Viewsonic, have begun to concentrate their efforts on new product development to offset losses caused by big price cuts.

Viewsonic launched its new wireless visual technology products with full compatibility with any display devices to smoothly transmit high quality images early this week. And some Japanese and South Korean producers, like Samsung, Sony and Sharp, have also started heavily investing in the construction of the seventh LCD production lines.

China's local LCD product manufacturers, however, need to adjust their product development orientation based on China's particular circumstances, government officials implied.

For the time being, LCD products with rich high-tech content do not foresee promising market prospects in light of the status quo of Chinese LCD consumers, so those producers are supposed to continue turning their attention to current technology for staple LCD production, government officials in charge of the LCD industry say.

The officials add that another risk in blindly following global LCD technology trends lies in the tremendous investments required in constructing new production lines, which might curb the healthy development of the low-profit LCD industry in China, as the sixth generation production line with a monthly output of 60,000 panels needs an investment of 20 billion yuan (US$2.4 billion) and the investment of Sharp's current seventh generation production line totals

302 billion yuan (US$36.4 billion), according to a Xinhua report.

Source: China Daily