Corning to Invest in LCD Glass Substrate Facility in China
Corning Inc. announced recently that with the support of the Hefei government, it will locate a Gen 10.5 glass manufacturing facility adjacent to the BOE Technology Group Co. Ltd. plant in the Hefei XinZhan General Pilot Zone in Anhui Province, China. Glass substrate production from the new facility is expected to support BOE’s plan to begin mass production of LCD panels for large-size televisions by the third quarter of 2018.
The total investment for the facility is approximately $1.3 billion. Corning’s investment will be composed primarily of equipment and precious metals. Corning’s net outlay of $460 million, which is net of government and commercial incentives, is expected to be approximately $290 million in cash and $170 million of currently owned precious metals.
As part of this investment, Corning and BOE have entered into a long-term supply agreement that commits BOE to the purchase of Gen 10.5 glass substrates from the Corning manufacturing facility in Hefei. BOE also has extended its long-term supply agreement with Corning to purchase glass substrates for Gen 8.5 sizes and below.
The market for large-size TVs is projected to grow at a compound annual growth rate (CAGR) of more than 20%. This investment will reportedly enable Corning to become the first manufacturer of TFT-grade Gen 10.5 substrates. At 2,940 x 3,370 mm, Gen 10.5 will be the largest LCD glass substrate available. The Gen 10.5 substrates manufactured at the Hefei facility will use Corning® EAGLE XG® slim glass.
“Corning is pleased to extend its close relationship with BOE and to demonstrate our continued commitment to China, the world’s largest TV market,” said James P. Clappin, president of Corning Glass Technologies. “As demand for large-size LCD TVs accelerates, we are supporting this trend by utilizing our superior fusion technology to deliver the industry’s largest glass substrates to a key customer.”
For more information, visit www.corning.com.