China: TFT-LCD manufacturing capacity booms

TFT-LCD manufacturing capacity in China will grow 35% in 2007 and by 50% in 2008, as new fabrication capacity comes online, according to new market research from Semiconductor Equipment and Materials …

TFT-LCD manufacturing capacity in China will grow 35% in 2007 and by 50% in 2008, as new fabrication capacity comes online, according to new market research from Semiconductor Equipment and Materials International (SEMI.) The SEMI report estimates that as investment in display production plants slows elsewhere, China could eventually account for 20% to 30% of the world market for TFT-LCD manufacturing equipment. Currently, China is home to two fifth generation (5G) TFT-LCD fabs in production, one 5G fab coming on line, one existing 5G fab expansion, one GI plant, while there are three Chinese-owned 2G-3G lines in Korea. Earlier in 2006, Corning Inc. became the first TFT-LCD glass substrate supplier to announce a production plant on the Chinese mainland. SEMI further noted that there are also a number of new investments at various stages of planning including a Truly Semiconductor 2.5G project, a Shanghai Tianma 4.5G line, plus an additional 60,000 sheets of 5G capacity per month by InfoVision Optoelectronics. In addition, a Shenzhen Innolux 5G is awaiting environmental approval, as well as a 6G plant by Shenzhen Jiulong, and another 6G plant by Shanghai SVA-NEC. “To date, there has been very little production of TFT-LCD materials or components in China”, said Mark Ding, president of SEMI China, in a statement. “However, the influx of both Chinese and foreign-owned companies that are beginning to establish these local facilities is helping to significantly grow this market, and will ultimately help establish China as a global panel making market center of TFT-LCD materials and components”.