Industry news

Sakai Display Product's (Sharp's subsidiary) 10G using 2,880mm by 3,130mm glass substrates) TFT-LCD factory in Japan is currently one of the highest generation plants but four 10.5G and 11G TFT-LCD factories are under construction or are planned in China, according to industry sources.

China-based BOE Technology is constructing a 10.5G TFT-LCD factory with monthly production capacity of 120,000 2,940mm by 3,370mm glass substrates that will start production in the first half of 2018, the sources said.

China Star Optoelectronics Technology will soon start construction of an 11G TFT-LCD factory with monthly production capacity of 60,000 2,940mm by 3,370mm glass substrates in the first phase and of 140,000 substrates eventually, and plans to kick off production in the first half of 2019.

HKC plans to construct an 11G TFT-LCD factory with monthly production capacity of 90,000 glass substrates at an investment of CNY40 billion (US$5.8 billion). The factory is expected to have an annual output of 8.64 million panels for total revenues of CNY22 billion. In addition, HKC will invest CNY5 billion to set up an annual production capacity of 5-10 million LCD TVs.

In addition, Taiwan-based Foxconn Electronics has become the majority shareholder of Sharp and the two companies will cooperate to construct a 10.5G or 11G TFT-LCD factory in Guangzhou City, southern China, with planned investment of over JPY800 billion (US$6.9 billion) and production planned to begin in 2019.

As 43- and 65-inch LCD TV panels are in short supply, the four 10.5G and 11G TFT-LCD factories are expected to focus on production of 43-, 65-, and 75-inch and above TV panels, the sources analyzed.

Currently, 43-inch LCD TV panels are produced mainly at 7.5G factories (using 1,950mm by 2,250mm glass substrates), the sources said. As 7.5G factory capacity is not enough to meet market demand, panel makers also use a multi-model glass process at 8.5G factories to simultaneously produce eight 43-inch LCD TV panels and eight 18.5- or 21.5-inch panels from a single 2,200mm by 2,500mm substrate, the sources indicated.

65-inch LCD TV panels are mainly produced at 6G factories, with a 1,500mm by 1,850mm glass substrate being cut into two panels. However, Samsung Display and LG Display use a multi-model glass process to simultaneously produce 65- and 32-inch LCD TV panels at their 8.5G factories.

10.5G or 11G factories enable production of 18 43-inch LCD TV panels or eight 65-inch units using 93% and 94% of a single substrate without using multi-model glass processing, the sources indicated. However, yield rates hinge on effective control of cutting such large glass substrates, the sources noted.