Corning to invest $129M in advanced LCD plant

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Apr 26, 20072 mins

Newer 8G factories are important to continue to drive down the cost of LCD panels and to make bigger panels

Amid rising prices for the LCD (liquid crystal display) panels used as screens in LCD TVs, laptop PCs, and flat desktop displays, Corning announced plans to spend an additional $129 million to expand a glass substrate factory in Taiwan.

The investment will ensure a steady supply for glass substrates for state-of-the-art 7.5G (seven and a half generation) and 8G (eighth generation) LCD panel production in Taiwan, Corning said Wednesday.

LCD panel prices started to rise in late March after several months of declines, according to figures by industry researcher WitsView Technology. Prior to the rebound, LCD panel makers such as AU Optronics and Chi Mei Optoelectronics of Taiwan had curtailed output and delayed new factory investments in an attempt to wipe out the glut responsible for the poor pricing.

The glut was good for users, however, because declining LCD panel prices ensure lower prices for a number of end products. The screens are among the most expensive parts of the products they go into.

Production at Corning’s Taichung, Taiwan facility is expected to begin by mid-2008.

The newer 8G factories are important to continue to drive down the cost of LCD panels overall and to make bigger panels, so users can buy LCD TVs with bigger screens. The plants use much bigger mother glass, measuring 2.16 meters by 2.46 meters. By comparison, current 6G (sixth generation) plants process 1.5 meter by 1.8 meter mother glass.

LCD panels are cut out of the mother glass at various sizes, depending on whether they will be used in laptops, LCD TVs or other devices. One sheet of 8G mother glass can be cut into eight 40-inch panels or six 50-inch panels for LCD TVs.

AU Optronics operates one 7.5G plant in Taichung currently, and is building another one at the site. Chi Mei plans to start production at an advanced LCD factory later this year.