Fujifilm and SVA Electron Co. Ltd establish joint venture to manufacture color filters for TFT LCDs in Shanghai

Strengthening color filter business in China's rapidly growing LCD market

August 22, 2006

Fuji Photo Film Co., Ltd. (President and CEO: Shigetaka Komori; hereinafter referred to as “Fujifilm”) announced today that it has concluded a contract with a major Chinese home appliance and electronic components company SVA Electron Co., Ltd. (President:GuZhong Hui; head office: Shanghai, China; hereinafter “SVA”) to establish a joint venture company called SVA-Fujifilm Opto-Electronic Materials Co., Ltd (hereinafter “SVA-Fujifilm”) to manufacture color filters (hereinafter “CF”) for TFT liquid crystal displays in Shanghai.

SVA-Fujifilm will be the first company in China to manufacture CF for large-size TFT LCDs. The new company will supply large-size CFs used in laptops, monitors, and large screen TVs for the rapidly growing Chinese LCD market, mainly through SVA-NEC, a member of the SVA group,

The new company will be capitalized at US$ 100 million at an investment rate of 75% for SVA and 25% for Fujifilm. The total capital investment is expected to be US$ 270 million. The production line will use 5th generation glass substrate (1,100 x 1,300 mm), and production capacity based on glass substrate used is expected to be 70,000 units per month. Production is scheduled to begin in November 2007. When production begins on a mass scale, the company will have employed approximately 500 workers.

CFs are made of black matrices (BM) that heighten the contrast of the picture and red, blue, green (RGB) picture elements which make a picture appear in full color. Photo spacers (PS) are required to maintain a perfectly uniform space between the CF and the TFT glass substrate. The new company will manufacture BM and PS using Fujifilm's proprietary and well-established “Transer method*1.” The RGB picture elements will be manufactured by the “Slit coat method*2” using Fujifilm's color resists for LCD color filters called “Color mosaic*3.” The combined process of “Transer method” and “Slit coating method” is called the “Hybrid CF production method,” an approach that will ensure high quality with maximized precision, sensitivity and uniformity which are characteristics of the Transer method, while also maintaining low production costs.

*1 Transer method: A CF production system that employs an exposure and development process that transfers a photosensitive film layer (pigment distribution liquid) preformed on a Polyethylene Terephthalate (PET) film onto a glass substrate using a dry lamination method. Characterized by high precision, high sensitivity, and high uniformity, it is easy to handle, making it appropriate for large panels.
*2 Slit coating method: A system for producing CF through an exposure and development process in which a photosensitive resist layer is formed directly on a glass substrate with a device called a slit coater. This method is commonly used in 5th generation CF production lines.
*3 Color mosaic: Color resists for LCD color filters; suitable for all types of LCD including transparent, trans-flective and reflective types. Its product line also includes color resists for primary colors, complementary colors and photo spacers to control LC cell gaps.

In addition, Fujifilm will invest approximately 4 billion yen to establish a new R&D Division within Fuji Photo Film China Investment Co., Ltd., its subsidiary in China. The new R&D Division will conduct research on new products and LCD-related technology focusing primarily on CF. It will contribute to the development of LCD technology in China and will hasten the start-up of mass production in the new company.

Fujifilm has positioned production of materials for LCDs and other flat panel displays as a core business and will sustain its investment in R&D and enhanced production capacity. The SVA group is a leading Chinese company in the fields of telecommunications equipment, home appliances, displays, and electronic components. With this powerful joint venture partner, Fujifilm will be directing its full strength into expanding its share of the Chinese flat panel display materials market, contributing to the development of the IT industry in China.

Profile of Joint Venture Company
1.   Company name: SVA-Fujifilm Opto-Electronic Materials Co., Ltd.
2. Location: Xinzhuang Industry Park, Minhang, Shanghai, China
3. President: to be announced
4. Business activities: Development, manufacture and sales of CF for TFT LCD and related parts
5. Establishment: November 2006 (provisional)
6. Start of production: November 2007 (provisional)
7. Production capacity: 70,000 units/month
8. Total investment: Approx. US$ 270 million
9. Paid-in capital: US$ 100 million
10 Investment ratio: SVA = 75% (US$75 million); Fujifilm 25% (US$25 million)

Profile of SVA Electron
1.   Company name: SVA Electron Co. Ltd.
2. Location: 26F No.97 Changshou Road, Shanghai, China
3. President: Gu Zhong Hui
4. Business activities: Development, manufacture, and sales of CRT, PDP, LCD and other display and general electronic products
5. Capitalization: US$133 million
6. Performance (FY 2005): revenues = 3.18825 billion yuan (46.2 billion yen); net profit = 10.42 million yuan (150 million yen); total assets = 4.44042 billion yuan (64.3 billion yen)

Media Contact:
Fuji Photo Film Co., Ltd.
Public Relations Division
Tel: 81-3-3406-2490
Fujifilm website:
Japanese : http://fujifilm.jp/
English : http://www.fujifilm.com/