10% of sales, but not 10% of profits. The bigger impact is if they had planned on increasing panel output and what that will do to the margins in that business.
Anybody know how LCD panels are made-- is a large slab cut down to small displays? How big is the slab...?
edit-- a little Google help:
The front glass plate and the rear glass plates are produced in different production lines. In most cases several (4-6) displays are produced on one glass plate. The rear glass plates is the substrate for the TFT production in case of active matrix LCDs. On top of the ITO layer, the transistors are created by a serious of PECVD and sputter steps. Then hard coat, polyimide and spacers are applied.
The front glass plate wears the colour filter layers, same as the rear glass plate ITO, hard coat and polyimide and the sealing.
In the assembly machine, the two glass plates are aligned, combined and fixed together, using UV hardened polymer spots. Then the raw panels are pressed together and heated in order to cure the seals and create a stable panel structure. Then the large panels are scribed and broken to the final display dimensions. The edges are ground. Now the singularised displays are filled with liquid crystal liquid and the opening in the seal is closed. The polarizers are applied to both sides. The display is ready. Following steps are mounting of electronic and packing.