August 6
News Release
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August 6, 2003
Epson Announces Resumption of Construction at Chitose Plant
TOKYO, Japan, August 6 - Seiko Epson Corporation ("Epson") today announced its decision to resume construction at its liquid crystal panel manufacturing plant in the city of Chitose, Hokkaido.
1. Factors behind the Decision
Epson will manufacture high-temperature polysilicon (HTPS) TFT panels at its Chitose Plant, located in the Chitose ViVi World industrial park. The company will invest approximately 29.7 billion yen (including 6.5 billion
yen
already invested) on the first phase of construction, with completion slated for June 2004. The Chitose Plant will be Epson's first to produce HTPS panels for leading-edge liquid crystal projectors using 300-millimeter (12-inch) quartz glass wafers.
Construction of the plant began in August 2001, and the start of operations was originally scheduled for fiscal 2003. While the building itself had been completed, the launch of operations had been postponed until 2004 in the light of a slowdown in the US economy and a worldwide recession.
After closely following market trends, Epson reached a decision to begin production at the Chitose Plant in October 2004 based on observations that projector sales have returned to a growth track since fiscal 2002. The company also believes that there are definite signs of a budding consumer market, centered on rear-projection TVs. The decision will enable Epson to tap the potential of the growing "digital society."
2. Epson's High-Temperature Polysilicon Panels
The market for HTPS panels - used in liquid crystal projectors - is expected to expand with the steady growth in demand for such projectors in both the corporate and education sectors. The panels are also key devices in consumer products such as home theater systems and rear-projection TVs, whose markets should grow with the spread of digital broadcasting and DVD players.
Epson's HTPS panels boast unrivaled brightness thanks to proprietary cutting-edge liquid-crystal and high-aperture technologies. They have constantly been industry leaders, claiming an overwhelming 57% share of the projector light valve market. (*1)
Cumulative shipments of Epson's HTPS panels exceeded 10 million units in October 2002 since mass production began in 1994. Epson hopes to reach the 20 million mark during fiscal 2004 ending March 2005.
The Chitose Plant will introduce new technology and be Epson's first to produce state-of-the-art HTPS panels using 300-millimeter (12-inch) quartz glass wafers. Initially, the plant will produce an equivalent of 2,000 wafers per month, but production will subsequently be expanded in accordance with market trends.
3. Provisional Outline of the Chitose Plant
The Chitose Plant has been designed with the environment in mind. It incorporates life-cycle-assessment considerations, such as the adoption of energy-saving equipment, use of recycled materials, and reduction of construction waste. The only primary energy sources the plant will use will be electricity and natural gas, thereby curbing carbon-dioxide emissions. In keeping with Epson's solid environmental track record, the plant's operations will be harmonized with the global environment. Efforts will also be made to build a plant that does not disturb the natural beauty of the surrounding area.
Name: Seiko Epson Corporation Chitose Plant
Address: 758-173 Bibi, Chitose, Hokkaido
Resumption of
construction: August 2003
Completion of clean
room: June 2004
Start of
operation: October 2004 (test runs using 12-inch wafers)
Product: High-temperature polysilicon
TFT panels
Area of plant
grounds: 160,213.56 m2
Building
details:
Structure: Steel-frame construction
Floors: Six stories above ground (plus rooftop structure)
Area occupied by building: 19,830.29 m2
Total floor space: 81,386.37 m2
Manufacturing capacity (at start of mass
production): 2,000 panels (12-inch wafer equivalent) per month
Manufacturing setup (at start of mass
production): Approx. 200 employees
Initial
investment: Approx.
29.7 billion
yen
(6.5 billion
yen
spent through fiscal 2002; the latest board decision will result in
2.5 billion
yen
in fresh spending in fiscal 2003 and
20.7
billion
yen in fiscal 2004)
Additional investments will be made in accordance with market trends.
The amount to be spent during fiscal 2003 is included in Epson's investment plans for the current fiscal year and will not affect Epson's performance forecast for fiscal 2003.
*1: Including liquid crystal and other formats. The percentage is Epson's own estimate based on figures provided by Techno Systems Research, DisplaySearch, Fuji Chimera Research Institute, and others.
About Epson
The Epson Group increases its corporate value through its innovative and creative culture. Dedicated to providing its customers with digital image innovation, its main product lines comprise information-related equipment such as printers and projectors, electronic devices including displays, semiconductors and quartz devices, and precision products such as watches. Epson products are known throughout the world for their superior quality, functionality, compactness and energy efficiency.
The Epson Group is a network of 73,797 employees in 114 companies around the world, and is proud of its ongoing contributions to the global environment and to the communities in which it is located. Led by the Japan-based Seiko Epson Corp., which is listed on the First Section of the Tokyo Stock Exchange, the Group had consolidated sales of 1,322 billion yen in fiscal 2002.
Contacts
Corporate Communications, Seiko Epson Corporation
+81-266-58-1705 or +81-3-3340-2637
E-mail
http://www.epson.co.jp/
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