Fujitsu Display Technologies is getting out of the increasingly competitive commodity LCD (liquid crystal display) panel business to focus on high-end panels.
Spokesperson for parent company Fujitsu, Nancy Ikehara, said it planned to concentrate on high-end notebook computer displays and high-resolution displays in the 17-inch to 23-inch range.
All of the displays will be based on its proprietary multi-dimensional vertical alignment (MVA) technology that the company claims provided a wider viewing angle, higher contrast ratio and faster response time than conventional LCD panels.
The high resolution panels will range from WXGA (1,366 pixels by 768 pixels) to UXGA (1,600 pixels to 1,200 pixels) and be aimed at applications such as desktop monitors, televisions and medical imaging and radar display terminals.
Fujitsu's exit from the commodity market comes as manufacturers in Taiwan and South Korea are increasingly taking a larger slice of the market from Japanese manufacturers.
Some of the production being ended by Fujitsu will be taken up by Taiwan's AU Optronics, Ikehara said. In January, the Taiwanese company signed a memorandum of understanding to take a 20 per cent stake in Fujitsu Display Technologies, which was formed in June 2002. Based in Hsinchu, Taiwan, AU is one of the world's biggest manufacturers of LCD panels.
In late January, Fujitsu reported its financial results for the October to December period: consolidated net sales were off 4 per cent year-on-year. Operating losses and net losses both narrowed as a result of ongoing restructuring but the company said it was likely to report a consolidated net loss for the year to March.