SHANGHAI China's Ministry of Information Industry is stepping up its efforts to steer local companies into the flat-panel TV industry.
MII officials will speed up new flat panel R&D and industrialization with an emphasis on 5G fabs for TFT-LCD, color filters, mother glass, LED backlights and PDPs that are 42 inches or larger. Details were not immediately available on how much the ministry is willing to spend to see this happen.
In LCD TV, MII said it will lend support to large companies interested in building LCD and module R&D centers to enhance their innovative ability. MII will also encourage cooperation among TV makers and display components suppliers.
In addition, MII will strengthen its support for R&D of OLED and FED components and modules, including small-size OLEDs for cell phones, PDAs and MP3 players to meet the needs of the domestic market.
China's largest TFT-LCD maker, Beijing BOE Optoelectronics Technology Ltd. (BOE OT), recently dumped most of its interest in large-sized TFT-LCD panels after failing to make it profitable. Instead, the company will focus on small-sized panels for mobile phones and other portable applications.
The Chinese government is targeting the LCD industry for major growth, hoping to see a handful of fifth-generation LCD production built lines by 2008, with additional sixth- and seventh-generation lines slated for 2010. Currently, China is home to two operational fifth-generation fabs and another that will come online soon.