To counter plunging demand from the thin film transistor-liquid crystal display (TFT-LCD) panel industry, Asahi Glass Co. (AGC) of Japan has decided to slow down its capacity expansion projects in Tai…
To counter plunging demand from the thin film transistor-liquid crystal display (TFT-LCD) panel industry, Asahi Glass Co. (AGC) of Japan has decided to slow down its capacity expansion projects in Taiwan. AGC claimed that its Taiwanese subsidiary, AGC Dispaly Taiwan Co., Ltd., would temporarily slow down capacity expansion and furnace building projects, but would resume the projects in Taiwan when market demand recovers. AGC also said that it will not switch its investment projects to South Korea or other nations. Currently, AGC is the world“s second-largest glass substrate supplier and the sole manufacturer using patented float-type processes. The Japanese glass-making group chose to locate its first overseas glass substrate furnaces in the Yunlin Technology Industrial Park, southern Taiwan. Including the three other furnaces in Tainan, southern Taiwan, AGC operates four furnaces on the island to supply most TFT-LCD panel makers. The Japanese glass maker originally planned to match local panel suppliers“ capacity expansion by increasing its existing glass capacities at the four furnaces and trying to find a new plant campus to set up new furnaces in order to diversify risks and provide faster services to customers. As glass substrates plays a vital role in the development of the local TFT-LCD industry, the Ministry of Economic Affairs (MOEA) has been attentive to AGC“s requirements and has promised to provide related assistance.