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TOKYO, July 26, 2001 --- Hitachi, Ltd. (TSE: 6501) today announced
that it has decided to withdraw from CRTs for PC monitors. In line
with this decision, by the end of 2001 Hitachi will halt production
of monitor CRTs at its manufacturing bases in Japan, Singapore and
Malaysia, and is reviewing specific options for selling the business.
The sluggishness of the desktop PC market has reduced demand for CRTs
for PC monitors, leading to a sharp fall in prices. Moreover, with
future demand expected to shift to LCD monitors, there are no prospects
for growth of the monitor CRT market.
Hitachi's Display Group has been endeavoring to boost the cost-competitiveness
of its products by transferring production overseas and moving to
a lineup of higher-value-added products such as short-length CRTs,
flat-face CRTs and large-screen CRTs for PC monitors. However, it
was determined that any radical improvement in profitability would
be difficult to achieve, leading to the decision to pull out of the
monitor CRT business.
Looking ahead, the Display Group intends to concentrate resources
on flat panel displays, particularly TFT LCDs including low-temperature
poly-silicon TFT LCDs, and to utilize its leading-edge technology,
including Super TFT, which offers high picture quality and a wide
viewing angle and is well-suited for moving picture images. In addition,
this month saw the start of TFT LCD production at a high-efficiency
production line that uses the world's largest glass substrates, measuring
730 mm by 920 mm. By utilizing these strengths, Hitachi will focus
on expanding and improving the profitability of its display business,
using a product lineup that ranges from small and medium-sized LCDs
for mobile phones to large-screen models for multimedia applications.
Outline of Hitachi's CRT business for PC monitors
| 1. |
Scale of business (fiscal 2000, ended
March 31, 2001) |
| |
Sales |
: |
Approx. 59 billion yen |
| |
Production quantity |
: |
Approx. 5 million pieces |
| 2. |
Outline of production
bases Japan |
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Japan |
| |
Facility |
: |
Sakura Works, Display Group, Hitachi,
Ltd. |
| |
Location |
: |
Sakura City, Chiba Prefecture, Japan |
| |
Production item |
: |
CRTs for PC monitors |
| |
Production quantity |
: |
Approx. 1.3 million pieces (fiscal 2000) |
| |
Number of employees |
: |
Approx. 770 (including employees of
subsidiaries) |
| |
Singapore |
| |
Facility |
: |
Hitachi Electronic Devices (Singapore)
Pte. Ltd. |
| |
Location |
: |
Singapore |
| |
Production item |
: |
CRTs for PC monitors |
| |
Production quantity |
: |
Approx. 2.5 million pieces (fiscal 2000) |
| |
Number of employees |
: |
Approx. 950 |
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Malaysia |
| |
Facility |
: |
Hitachi Electronic Display Devices (Malaysia)
Sdn. Bhd., etc. |
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Location |
: |
Johore, Malaysia |
| |
Production item |
: |
CRTs and electron guns for PC monitors |
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Production quantity |
: |
CRTs: Approx. 1.2 million pieces (fiscal
2000)
Electron guns: Approx. 4 million pieces (fiscal 2000) |
| |
Number of employees |
: |
Approx. 1,670 |
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