Toshiba, IBM to increase flat panel display production

Toshiba and IBM has announced they are boosting the output of LCD display screens at their display technology joint venture by 50 per cent starting April 2000 after its plants have been retooled at a cost of $100 million to manage the higher production requirements.

Display technology operates two plants in western Japan. Production of 12-inch displays will increase to 450,000 units a month and 10.4 inch displays to 240,000 units, a 20 per cent increase. Global demand for LCD displays continues to lag industry output as flat-screen monitors for desktop PCs are increasingly preferred to traditional CRT displays. A shortage of LCD screens is threatening Toshiba’s ability to meet demand for PCs this year. Toshiba shipped 2.9 million PCs last year.

Toshiba also faces new competition in the highly profitable LCD business. NEC and Mitsubishi Electric are combining their worldwide computer and television monitor businesses with a new joint venture that will merger their respective development, production and sales of computer and TV monitors and LCD panels.