Reform of LCD Business through Reorganization of Bases in the Himeji Region

As part of its business structure reform aimed at improving profits, Toshiba Mobile Display Co., Ltd. (President: Yoshio Ooida; hereinafter referred to as TMD) will implement reorganization of its two bases in the Himeji region based on the following two main measures: (1) Incorporation of the Himeji Works (Yobe-ku, Himeji-shi, Hyogo Prefecture) into the Ishikawa Works (Kawakita-cho, Nomi-gun, Ishikawa Prefecture) and (2) Discontinuation of production at TFPD Corporation (Yobe-ku, Himeji-shi, Hyogo Prefecture), a subsidiary of TMD.

In response to the tight business environment resulting from a significant drop in demand for LCD and its price on a global scale, TMD is undertaking radical structural reforms including the discontinuation of unprofitable production lines mainly for amorphous products and heightened concentration of management resources on high-function, high added-value low-temperature polysilicon LCD products.

Through accelerating the decision-making process to respond to changes in the business environment brought about by the melding of production bases by transferring the functions of the Himeji Works to the Ishikawa Works and establishing an efficient management system, the closing of the production line for amorphous products that feature small substrates and low profitability is intended to realize conversion to a management structure geared to the generation of profits through compression of fixed assets.

While the Himeji Works (Number of employees: Approximately 400) fulfills functions such as production, logistical control of materials and products and quality control for the module process (See Note 1), the module production line is scheduled to be transferred to the Ishikawa Works in January next year. Prior to this move, phased transfer of indirectly-related departments such as production technology and quality control to locations such as the Ishikawa Works is scheduled to begin in October of this year. This will mean that approximately 310 employees will be transferring from the Himeji Works to the Ishikawa and Fukaya Works.
Note 1: Module process: Mounting of components such as driver LSIs, backlight and bezel (frame) onto liquid crystal panels to complete LCD devices as products.

Production at TFPD (Number of employees: Approximately 530) where array and cell production processes (See Note 2) at the size of compact glass substrates (360mm x 465mm) mainly for on-board amorphous silicon products are carried out is scheduled to be discontinued at the end of December of this year.
Note 2: Array and cell processes: Process for molding of components such as liquid-crystal control electrodes and thin film transistors (TFT) onto glass substrates and process during which glass substrates are combined, injected with liquid crystal material, cut into display device sizes and mounted with polarization plates.

It is planned to arrange for employees not scheduled for transfer to other plants of TMD to be reassigned to other companies mainly within the Toshiba Group.

During this reorganization, TMD proceeds with the construction of an ultra-high quality production line with an end-to-end processing of array, cell and module and the concentration of indirectly-related departments mainly at the Ishikawa Works. The aim of this process is to build an efficient management system and conversion to profitability with the goal of achieving a shift into the black in final profits within this fiscal year.

[Corporate Profiles]

Toshiba Mobile Display Co., Ltd.
Date of Establishment: April 1, 2002
Location: Reverge Shinagawa, 4-1-8. Konan, Minato-ku, Tokyo
Representative: Yoshio Ooida, President and CEO
Capital: 10 billion yen
Number of Employees: Approximately 2,700

TFPD Corporation
Date of Establishment: September 1, 2001
Location: 50 Kamiyobe, Yobe-ku, Himeji-shi, Hyogo Prefecture
Representative: Hidenori Yamaguchi, President and CEO
Capital: 450 million yen
Number of Employees: Approximately 530

Note: This release has been distributed in Tokyo as well as to the Kobe Economics Press Club and the Harima Economics Press Club.