Everyone who had the dough to invest in LCD panel manufacture did just that. After all, weren't they going to be THE NEXT BIG THING?
It turned out that they were and they weren't. Sales amount to billions. Consumers love them. But the whole world can't buy enough to match the manufacturer's capacity. They simply over-estimated how fast they would fly off the shelves or there were simply too many outfits making them. Accounts differ.
Anyway; prices fell to insanely low levels for a while and will remain near those lows for the foreseeable future. So, LCD Panels have become NEXT BIG THING TO GET OUT OF. (Sorry. I just couldn't resist the emphatic statement.) The margins are thinner than the number of people who dare to go hunting with Dick Cheney. Phillips is just the first in a line of foundrys who will be selling off or dismantling their flat panel operations.
I guess I am crowing a bit. I've been telling you this would happen. Not Phillips in specific, but the over-supply was so dramatic that it was plain some of the manufacturers would have to bail.