Sharp to build new LCD TV factory

Sharp is the biggest producer of LCD televisions

Japanese electronics giants Fujitsu and Sharp have both unveiled major new investment in manufacturing facilities to keep up with product demand.

Sharp is to spend $1.75bn (£956m) on raising output levels at a liquid crystal display (LCD) flat-screen television plant in western Japan.

Fujitsu is to invest $1bn in a new semiconductor factory in central Japan to supply its range of products.

It comes a day after rival Matsushita said it is to build a new $1.6bn site.

Surging sales

Matsushita, best known under its consumer brand Panasonic, is concentrating more on the rival plasma flat-screen technology.

Right now we are not able to supply enough product to meet demand Sharp president Katsuhiko Machida

It intends its forthcoming factory in Amagasaki, western Japan, to produce six million plasma screens a year.

Sales of flat screen televisions, both LCD and plasma, have surged over the past year, with all TV manufacturers rushing to keep up with demand and expand their ranges.

"Right now we are not able to supply enough product to meet demand," said Sharp president Katsuhiko Machida.

Sharp, the world's biggest producer of LCD screens now intends to lift output to 30,000 TVs per month by March 2007, and possibly to 90,000 per month by 2008.

Mr Machida added that Sharp may need to build further LCD plants.