LG Electronics has become the first major company to enter the tempered glass market. Currently, China’s BIEL, Lens Technology, etc. are dominating the world market with cheap labor costs.
LG Electronics plans to build cover glass processing capacity for products such as flexible display that will pull next generation demands.
LG Electronics has recently begun preparing for the tempered glass manufacturing business. A related exclusive organization under direct control of vice-chairman Koo, Bon-joon, has also been newly created. Their goal is to have related production facilities equipped by the end of June.
An official of the LG Group said, “It is a business that we have been examining since 2013. We had always thought about whether LG Electronics or LG Display should take the leadership and make promotions, until recently, we drew the strands to LG Electronics. The related team in charge is examining printing related facilities needed for the post-process, and there are currently three to four equipment companies as strong candidates.”
The industry predicted that LG Electronics will take advantage of resources in Vietnam, since they are building the largest production complex there, where the production capacity is 100 million cell per month.
LG Electronics started to show interest in the glass processing business as they stopped producing Plasma Display Panel(PDP) TV.
While searching for an alternative business to utilize the idle production line at the Gumi plant in Gyeongbuk, they turned to the tempered glass processing business that is related to PDP manufacturing techinique.
PDP panels are manufactured by cutting a groove into each single pixel and inserting fluorescent substance. The groove-cutting technique can touched up to be utilized in cutting tempered glass.
LG Electronics are processing glass using a part of the existing PDP line. Until now, the purpose was to appropriate internal demands as home appliances.
Technology internalization is a big reason why LG Electonics is belatedly entering the glass processing business, which Chinese companies are dominating in advance. Glass processing capacity has emerged as an important process powerful enough to influence the total yield as flexible display applied products have recently appeared.
The Computer Numerical Control(CNC) cutting process is the key point. LG Electronics plans to secure both cost competitiveness and product quality by securing automation technology in this field.
The industry assumes that LG is also considering tempered glass production targeting the electric car market, which is receiving attention as the future cash cow.
Staff Reporter Sung, Hyun-hee | sunghh@etnews.com