The delay is due to Japanese manufacturer Canon Inc, which is reportedly having technical problems with new steppers, which are critical machinery for making LCDs. Steppers etch circuit patterns onto LCDs.
Specifically, Canon is experiencing problems with the optical units of its latest stepper series, the MPA-8000, 30 units of which are thought to have been shipped since July (a third of its total shipments of this model this year). It is not clear how many of the shipped steppers have been affected.
Samsung has confirmed that the problem has meant production at its seventh generation factory, scheduled to start in February next year, will be subject to a short delay, although the South Korea company does not think this will be a serious problem. The plant will make LCDs panels for widescreen TVs and was supposed to produce 60,000 panels a month.
Samsung is also the world’s biggest maker of liquid-crystal displays, and sales in this division rose 38% to KRW1.9 trillion ($1.66 billion) recently.
However, the LCD channel is awash with excess inventory, as many consumers refuse to see the advantages associated with a LCD television, especially considering its very high purchase cost.
The news of the delay in production of new LCDs meanwhile has eased fears of an LCD glut, as the number of new LCD factories coming on line threatened to oversupply in the market. According to a report in September by market researcher DisplaySearch, LCD makers shipped four million panels more than needed in the third quarter of 2004.
The news of the problem has however boosted the shares LG Philips LCD Co Ltd, the world’s second-largest maker of LCDs.
