Sharp has confirmed that it will be opening a massive new LCD manufacturing centre in Sakai City, Japan in March 2010.

The new centre will produce 10th generation LCD panels, as well as solar cells. The facility will also manufacture the components needed for manufacturing finished LCD screens.

“This will be a manufacturing complex for the 21st century,” said Doug Koshima, chairman of Sharp Electronics Corporation.

“It will allow production of LCDs with much higher efficiencies of scale and production. The 10th generation glass substrate is a first for the industry.”

He continued that while LCD revenues were expected to fall in 2009 due to the poor economic climate they would rise again in 2010to a value of about $70bn. As such the next factory was essential and would lower the cost of production so that it could be passed on to the customer while still maintaining profit margins.

However, another important part of the factory's production would be dedicated to solar cell technology. Both the US and Japan are expected to begin offering tax credits for installing solar cells and the new factory would help meet that demand.

Koshima also stated that the increased production output would not lead to the closure of any of the company's plants in Europe or the United States.