Corning, the world leader in glass substrates for flat-screen televisions, is considering its first plant in China, in order to cash in on attempts by Chinese TV producers to move from CRT televisions…
Corning, the world leader in glass substrates for flat-screen televisions, is considering its first plant in China, in order to cash in on attempts by Chinese TV producers to move from CRT televisions to flat-screen LCD models. Corning“s main LCD substrate plants are in Taiwan, the USA, Japan and South Korea. Corning supplies two Chinese electronics groups, BOE and SVA, which produce LCD screens mainly for China-based TV manufacturers. Both BOE and SVA are expected to increase output considerably over the next two years, while large Taiwanese LCD screen manufacturers such as AU Optronics and Chi Mei, are also likely to move some operations to China to reduce costs. Corning CEO Wendell Weeks, told the London-based Financial Times that demand for LCD-based TVs was rising fast, which was a boost to Corning as it accounted for more than half of the glass used in global LCD TV sets. The other important LCD glass producers are Asahi Glass, Nippon Electric Glass and Nippon Sheet Glass of Japan. Entrants to the sector face high costs because of the need for extensive R&D. According to industry estimates, about 72,000 tonnes of glass were produced worldwide for LCD TVs in 2004; the figure is likely to rise 50% to about 108,000 tonnes in 2005. In 2006, it could be 142,000 tonnes. According to Mr Weeks, approximately 10% of an expected 150 million TVs sold worldwide in 2005 will be based on LCD panels, compared to 5% in 2004. Prices for flat-screen panels are falling fast, helping to boost demand but also depressing margins for producers.