Shanghai Daily news

A liquid-crystal display panel plant that represents the second-biggest such investment in Shanghai will start construction in the second quarter next year, the principals said yesterday as they signed agreements on the 3.1 billion yuan (US$373.4 million) deal.
The plant, which will be located in the Pudong Zhangjiang High-Tech Industrial Park, is expected to start mass production within two years, focusing on small-size LCD products such as screens for mobile phones, portable DVD players and game consoles, industrial instruments and equipment for cars.
The major investors are Shenzhen-based TianMa Microelectronics Co Ltd, Shanghai State-owned Assets Operation Co Ltd, Shenzhen Catic Group and Shanghai Investment Group Co. They declined to reveal the investment structure.
The new plant is part of Shanghai's goal to attract 40 billion yuan in investment from 2006 to 2010 in the LCD industry.
SVA, which owns the city's biggest LCD panel plant, also said recently it will increase investment to build manufacturing plants for advanced LCDs.
"Building a plant for small LCDs requires less investment and therefore faces less risk," said Chen Lin, an analyst at Beijing-based CCID Consulting Co Ltd, a research firm under the Ministry of Information Industry.
"China's booming growth in mobile phones and cars will generate significant revenue at the Shanghai plant."
Advanced LCD panel plants, which turn out  monitors and TVs, often cost US$1 billion to US$2 billion or even more.
Shanghai is a good choice for companies seeking to invest in the LCD industry as it boasts a complete supply chain, according to Chen.
For example, Taiwan and US-based investors have established plants in Shanghai and other parts of the Yangtze River Delta to manufacture color filters and glass, key components for LCD monitors.
In the next five years, Shanghai forecasts that the LCD industry will generate 100 billion yuan in revenue.
Separately, SVA Group said recently that it and city government will invest US$6 billion in an industrial park to produce flat-panel screens, which will relieve the industry's reliance on overseas manufacturers.