Competition is intensifying between the world“s top two manufacturers in the glass substrate market. The outcome of the battle between Corning Inc. of the US and Asahi Glass Co. of Japan, which use r…
Competition is intensifying between the world“s top two manufacturers in the glass substrate market. The outcome of the battle between Corning Inc. of the US and Asahi Glass Co. of Japan, which use rival production technologies, could strongly influence the future standards for materials and production equipment used to make LCD panels. On 14 September 2004 Corning invited about 20 stock analysts from Japan and other countries to its plant in Shizuoka Prefecture to show off its line for sixth-generation (1.5 x 1.8m) LCD panels that began operating in June 2003. The unprecedented disclosure of what was formerly treated as top secret “may derive from its relaxed attitude now that it is the top maker,” an analyst said. Thanks to the booming LCD market, the company reported a profit of USD 163 million for the January-June period of 2004 and its share price remained above USD 10, up from less than USD 5 in 2002. The fusion process used by Corning exploits the effect of gravity to form glass slowly, a technique which James P. Clappin of the company“s display division in Asia says is price-competitive because it avoids the need for a polishing process. Nippon Electric Glass Co. and NH Techno Glass Corp. have also adopted the same production process Asahi Glass, on the other hand, uses the float process for its LCD substrates, which the company says offers production capacity per furnace five to six times higher than the fusion process, making it a much more economical investment, even with the addition of the polishing process. The method is best suited to mass producing large substrates, but the advantages are lost if the yield is low. In August 2004, Corning signed a five-year deal to supply advanced fifth-generation glass substrates to Chi Mei Optoelectronics Corp., Taiwan“s No. 2 LCD panel maker, which had reportedly been purchasing almost exclusively from Asahi Glass. And on 6 October 2004, Corning decided to invest another JPY 35.7 billion to increase production in Taiwan. Asahi Glass, meanwhile, “may have lost some of its LCD market share, dropping to about 20% recently (from about 30%),” said an analyst, mainly as a result of Corning“s expansion. The direct cause of its recent slump is its slow adjustment to larger products. It planned to supply sixth-generation substrates to Sharp Corp. from its Kansai plant in Hyogo Prefecture in January 2004, but that was postponed until July because of a problem with bubbles forming in the glass. Vice President Takashi Wada, who presides over the Asahi Glass“s display company, said he gives the plant a rating of “75 out of 100 for now.” In July 2004, Asahi Glass moved a key person from its CRT glass division to the flat-panel display division, apparently to bolster its LCD business. Early in 2004 the company announced a plan to invest JPY 49 billion in Taiwan, South Korea and Japan. Its share price, which closed at JPY 925 in mid-August, has remained above JPY 1,000 recently. “We are at a crucial point,” Wada said.Competition is intensifying between the world“s top two manufacturers in the glass substrate market. The outcome of the battle between Corning Inc. of the US and Asahi Glass Co. of Japan, which use rival production technologies, could strongly influence the future standards for materials and production equipment used to make LCD panels. On 14 September 2004 Corning invited about 20 stock analysts from Japan and other countries to its plant in Shizuoka Prefecture to show off its line for sixth-generation (1.5 x 1.8m) LCD panels that began operating in June 2003. The unprecedented disclosure of what was formerly treated as top secret “may derive from its relaxed attitude now that it is the top maker,” an analyst said. Thanks to the booming LCD market, the company reported a profit of USD 163 million for the January-June period of 2004 and its share price remained above USD 10, up from less than USD 5 in 2002. The fusion process used by Corning exploits the effect of gravity to form glass slowly, a technique which James P. Clappin of the company“s display division in Asia says is price-competitive because it avoids the need for a polishing process. Nippon Electric Glass Co. and NH Techno Glass Corp. have also adopted the same production process Asahi Glass, on the other hand, uses the float process for its LCD substrates, which the company says offers production capacity per furnace five to six times higher than the fusion process, making it a much more economical investment, even with the addition of the polishing process. The method is best suited to mass producing large substrates, but the advantages are lost if the yield is low. In August 2004, Corning signed a five-year deal to supply advanced fifth-generation glass substrates to Chi Mei Optoelectronics Corp., Taiwan“s No. 2 LCD panel maker, which had reportedly been purchasing almost exclusively from Asahi Glass. And on 6 October 2004, Corning decided to invest another JPY 35.7 billion to increase production in Taiwan. Asahi Glass, meanwhile, “may have lost some of its LCD market share, dropping to about 20% recently (from about 30%),” said an analyst, mainly as a result of Corning“s expansion. The direct cause of its recent slump is its slow adjustment to larger products. It planned to supply sixth-generation substrates to Sharp Corp. from its Kansai plant in Hyogo Prefecture in January 2004, but that was postponed until July because of a problem with bubbles forming in the glass. Vice President Takashi Wada, who presides over the Asahi Glass“s display company, said he gives the plant a rating of “75 out of 100 for now.” In July 2004, Asahi Glass moved a key person from its CRT glass division to the flat-panel display division, apparently to bolster its LCD business. Early in 2004 the company announced a plan to invest JPY 49 billion in Taiwan, South Korea and Japan. Its share price, which closed at JPY 925 in mid-August, has remained above JPY 1,000 recently. “We are at a crucial point,” Wada said.