SVA, which has submitted three high-generation LCD proposals to local governments in China, plans to invest over US$1.5 billion to build a sixth generation LCD line.

SVA has received a project proposal on the sixth generation line from Shanghai Municipal Development and Reform Commission and if its feasibility report on the project is passed by the State Development and Reform Commission, which is expected to be done in a month, it can formally start the construction of facilities.

SVA has been brewing the sixth generation line for over three years. As early as in 2004 when its first fifth generation line was put into operation, the plan for building the sixth and seventh generation lines began to take a preliminary shape. Due to two years of continual losses of the fifth generation line since the second half of 2005, the company had to postpone the plan for the sixth and the seventh generation lines.

A representative from SVA says that the sixth generation line will mainly be used to create 32-inch and 37-inch LCD TV screens and SVA is fully capable of undertaking the cost of the construction of the line though it may need to consider introducing strategic partners for building a higher generation line.

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