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Corning, AGC Glass-substrate Capacity Expansion Projects Unit: 1 furnace Company Location 2004 2005 2006 Corning U.S.
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Japan 1 2 1 S. Korea 6 6 3 Southern Taiwan 4 2 0 Central Taiwan 0 4 2 AGC Japan 0 1 1 Taiwan (Yunlin) 1 1 1 Source: PIDA (Photonic Industry & Technology Development Association) Taiwan TFT-LCD Panel Makers Happy to See Substrate-price Falls in 2006 Taipei, Dec. 27, 2005 (CENS)--Both of the world's top-two glass-substrate makers are actively expanding their production capacity in Taiwan, which is expected to cut substrate transportation time and cost for local thin film transistor-liquid crystal display (TFT-LCD) panel makers and boost production efficiency, according to Michael Wang, project manager and senior analyst of Taiwan's PIDA (Photonic Industry & Technology Development Association).
According to Wang, Asahi Glass Co. (AGC) of Japan has solved problems in lowering the defect-free rate for the production of fifth- and sixth-generation (5G, 6G) glass substrates, and is expected to tap the market with products with higher price competitiveness in 2006 to grab more market share in the 6G substrate business
In addition, Wang added, the aggressive capacity added by both Corning of the U.S., the world's No. 1 substrate supplier, and AGC, the No. 2, will lead to price drops for glass substrates and will especially benefit TV panel makers such as AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. (CMO) in Taiwan
Currently, Wang pointed out, a 6G substrate is priced at about 27,000 to 30,000 Japanese yen, about 1,000 to 2,000 yen lower than in the third quarter of 2005. The substrate price is expected to further drop in the first quarter of 2006, the senior analyst said, as AGC begins shipment of 6G substrates
AGC was unable to mass-supply 5G and -beyond substrates in the past due to problems with the company's glass formula and polishing process, making Corning become the sole substrate supplier in the 5G business and pushing up prices of 5G and newer substrates to high levels. After AGC kicks off delivery of 6G substrates in early 2006, Wang said, prices are expected to go down
According to Wang, panel makers have little chance to bargain about the prices for 5G substrates, but they will have more leeway to bargain with 6G panel substrates, as the production volumes will be higher
Currently, Asahi Glass Fine Techno Taiwan Co. Ltd. (AFT), AGC's local subsidiary, does not have a 6G polishing line, but it does have plans to install one, which will greatly benefit local panel suppliers
In addition, Corning just announced that its new plant in central Taiwan's Taichung has begun shipment and is scheduled to hold an inauguration in January 2006. Corning also recently decided to pour an additional US$425 million into expanding the capacity at its Taichung facility, bringing the American company's total investment in the facility to US$1.5 billion
AFT recently also broke ground for the company's second plant, where it will install its third and fourth furnaces and three polishing lines, for the production of 5G-beyond substrates.
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December 28th, 2005
Source: Tmcnet.com |
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