Corning, AGC Glass-substrate Capacity Expansion Projects Unit: 1 furnace Company Location 2004 2005 2006 Corning U.S.

Date: 28 December 2005
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 businessIn 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 TaiwanCurrently, 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.

600450 Corning, AGC Glass-substrate Capacity Expansion Projects Unit: 1 furnace Company Location 2004 2005 2006 Corning U.S.
Date: 28 December 2005

See more news about:

Others also read

Emirates Glass, a Dubai Investment subsidiary, has won a major contract to supply 140,000 square meters of its premium glass to the prestigious development on the Palm Jumeirah, reaffirming its already established reputation as the single most prominent company in the entire regional glass industry.The deal was announced during the company's participation in the prestigious Big 5 show, the largest annual venue for the entire Middle-East glass contracting industry.
Packagers such as the UK's Rexam and private equity firms are set to vie for pump-sprayer business Calmar, which France's Saint-Gobain (SGOB.
Isra Vision Systems AG supplier of machine vision systems, has successfully improved its market position in display glass inspection with a major order totalling 1.8 Mio Euro.
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
Jain Scientific Glass Works, manufacturers of glassware for laboratories, is importing glass as raw material from China, which was much cheaper than the local product and abundantly available.
The following stocks are moving in Japanese markets today. Prices are as of 12:55 p.m. at the Tokyo Stock Exchange. Stock symbols are in parentheses after company names.

Add new comment