A new technology for reducing photolithography process from a four step to a three step process in the fabrication of TFT LCD is introduced. The core technology for 3-mask-TFT processes is the lift-off process [1], by which the PAS and PXL layers can be formed simultaneously. A different method of the lift-off process was developed in order to enhance the performance of efficiency with conventional positive and not negative PR which is the generally used in other lift-off process. In addition, the removal capacity of the ITO/PR in lift-off process was evaluated. The evaluation results showed that the new process can be run in conventional TFT production condition. In order to apply this new process in existing TFT process, several tests were conducted to ensure stability of the TFT process. It was found that the outgases from PR on the substrate in ITO sputtering chamber do not raise any problem, and the deposited ITO film beside the PR has conventional ITO qualities. Furthemore, the particles that were produced due to the ITO chips in PR strip bath could be reduced by the existing filtering system of stripper. With the development of total process and design of the structure for TFT using this technology, 3-mask-panels were achieved in TN and IPS modes, which showed the same display performances as those with the conventional 4mask process. The applicability and usefulness of the 3-mask process has already verified in the mass production line and in fact it currently being used for the production of some products.