In another indication of the intense competition among Asia's flat-panel display makers, NEC on Wednesday announced a tie-up with SVA, the Chinese electronics group, to build a liquid crystal display (LCD) production facility in Shanghai at a cost of ¥85bn ($700m).

NEC will contribute 25 per cent of the joint venture's capital with the remainder to be contributed by SVA.

The new facility, which will have a fifth-generation production line, is expected to come on stream in October 2004. It will employ an initial 1,200 workers and produce large TFT LCD screens predominantly for the Chinese market.

Samsung Electronics of South Korea said on Tuesday it would spend nearly $1bn on a plant that would also produce large-sized LCDs.

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