Taiwanese panel makers have slowed down their development plans for new generation plants, forcing components suppliers to put a brake on investments. US-based Corning, the world“s largest glass subs…
Taiwanese panel makers have slowed down their development plans for new generation plants, forcing components suppliers to put a brake on investments. US-based Corning, the world“s largest glass substrate company, is reportedly not proceeding with the expansion of its plant in Taichung. An unnamed Japanese glass substrate manufacturer is also said to have also postponed related investments in its Taichung production base. The market for 50-inch and larger LCD TV sets remains latent, and investment for 8th generation plant is excessively expensive, so Taiwan“s top two panel suppliers AU Optronics and Chi Mei Optoelectronics Group (CMO) have decided to postpone their 8th generation investment plans. South Korea“s LG Philips LCD Co Ltd (LPL) announced early in October 2006 the suspension of setting up 8th generation or more advanced plant. AU Optronics Corp chairman Mr. Lee Kun-Yao admitted a few days ago that there was no hurry to build 8th generation plant at the present. Components suppliers have also put their investment plans on hold. Corning has reportedly sent many professionals back to the United States because it has no plans to expand the glass furnace in Taichung. Corning Taiwan cited the global display vice president, Lisa Ferrero, as saying that Corning would meet any need its customers may have, and it was common for plant set-up engineers to come and go frequently between Taiwan and the United States. The company declined to offer more details about the plant expansion because of concerns over business confidentiality. DisplaySearch has predicted panel manufacturers“ investment in equipment would decline steadily over the next three years. It pointed out that equipment purchasing would decline by 8% in 2007, showing that the investment expansion has fallen from its peak. Thanks to panel companies“ conservative capital spending and expansion plans, problems of over-productivity will ease and panel prices should strengthen in the near future.