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                      | HITACHI HOME | UP | SEARCH | HITACHI

                      News Release ^
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                      October 20, 1999

                      Hitachi increases TFT LCD production capacity

                      -- Will build new production line in Mobara --

                      The Display Group of Hitachi, Ltd. has decided to construct a new TFT LCD production 
                      line (the V3 line) in Mobara-shi, Chiba Prefecture, in response to the rapidly expanding 
                      market for these displays.
                      The V3 line will be used for volume production of TFT LCD products for growth 
                      segments such as large LCD displays for desktop PCs, monitors for digital media 
                      applications, LCD TVs and notebook PCs, and medium- and small-sized LCD for 
                      portable information products.
                      
                      To start with, around 14 billion yen will be invested in the second half of fiscal 1999 to 
                      construct buildings and develop manufacturing equipment and systems.  The V3 line will 
                      be housed in a three-floor structure measuring 187 meters by 80 meters.  Construction 
                      will begin at the end of this October, and the new line is scheduled to start up in the 
                      second half of fiscal 2001.
                      
                      The demand for TFT LCDs with screen sizes over 36 cm (14 inches) is growing at a high 
                      pace, fueled by the increasing use of large displays for notebook PCs and the rapidly 
                      expanding market for desktop PCs with LCD monitors.  With manufacturers holding off 
                      on new investment in plant and equipment, the result has been a market shortage of such 
                      products.  From the fourth quarter of 1998, this shortage has been particularly marked 
                      with respect to large TFT displays.
                      
                      Hitachi has been responding to this situation by improvements in productivity to enhance 
                      the production capabilities of the existing TFT LCD production lines (lines V1 and V2)  
                      in  Mobara-shi.  In the first half of fiscal 1999, additional funds were invested in the V2 
                      line, providing a major increase in TFT LCD production capability. Hitachi  is currently 
                      producing about  230,000 units a month (on an output basis).  It was decided to build 
                      the new line in order to expand production capacity to meet the future growth in demand.
                      
                      From the standpoint of higher productivity, the V3 line will use the largest glass plate 
                      size possible, using as a basis the technology developed with the 650-mm-by-830-mm 
                      plates of the V2 line.  At present, a plate size of 730 mm by 920 mm is being considered, 
                      which is the industry's largest.
                      To differentiate its products, Hitachi is gradually incorporating its Super-IPS (In-Plane 
                      Switching) technology into its large TFT displays, resulting in a very wide viewing angle 
                      and fast response speed.  To further expand and stabilize its LCD business, Hitachi will 
                      also manufacture smaller TFT displays for portable information devices.
                      
                      The V3 will be able to produce the smaller displays in addition to the large ones, giving it 
                      the flexibility to meet the needs of various market conditions.  
                      Provided that there is no major change in the market outlook, an additional investment of 
                      some 20 billion yen will be spent on mass-production equipment in the first half of fiscal 
                      2000, and the new line will start volume production in the second half of fiscal 2001.  
                      
                      Market conditions permitting, after the start of production further funds will be invested 
                      in stages to increase production capacity.  In accordance with these additional investment 
                       plans, at full operations the input capacity will be approximately 40,000 glass plates a 
                      month.
                      
                      Outline of V3 line
                      Location:		Mobara-shi, Chiba Prefecture, Japan
                      Investment amount:	14 billion yen in the second half of fiscal 1999.  Then, 
                      			depending on market conditions, an additional investment of 
                      			around 20 billion yen is planned for the first half of fiscal 2000. 
                      			Following the start of production, scheduled for the second 
                      			half of fiscal 2001, it is planned to invest more funds in stages, 
                      			again depending on the state of the market.
                      Start of construction:	End of October 1999
                      Start of production:	Second half of fiscal 2001
                      Input capacity:		Approximately 40,000 glass plates a month at full operations
                      Production items:	Large LCD displays for desktop PCs, monitors for digital 
                      			media applications, LCD TVs and notebook PCs, and medium- 
                      			and small-sized LCD for portable information products.
                      
                      Hitachi's TFT LCD business
                      The V2 line uses what is currently the industry's largest glass plate size (650 mm by 830 
                      mm).  One plate is large enough to make nine 31cm (12.1-inch) panels, or six 38 cm (15-
                      inch) panels, or four 46 cm (18-inch) panels.
                      The Display Group has Chip on Glass mounting technology, used to meet the compact 
                      form-factor requirements of notebook PCs, and makes a number of key components in-
                      house, including color filters, LCD drivers and backlights.  This ensures Hitachi a stable 
                      supply of high-performance components.
                      
                      In 1996, the Display Group released the Super-TFT LCD, the first such display to 
                      incorporate IPS, resulting in a wide viewing angle, and currently manufactures 36 cm (14.1-
                      inch), 38 cm (15-inch) and 46 cm (18.1-inch) models for use as desktop PC monitors.  From 
                      this October, the Display Group has started to produce Super-TFT displays that use Super-
                      IPS technology to provide a further improvement in the image quality by minimizing color 
                      changes at all viewing angles, thereby also helping to differentiate Hitachi's TFT displays 
                      from other companies' products.
                      
                      


                      WRITTEN BY Secretary's Office
                      All Rights Reserved, Copyright (C) 1999, Hitachi, Ltd.

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