Chinese LCD factories that Korean display businesses built will operate at maximum starting next year. Korean businesses are also increasing their rates of operation to correspond to Chinese display businesses aggressively increasing their outputs. It is predicted that there will be a continuation of phenomena of excess demand as world’s display manufacturers are rapidly increasing their supplies.

LG Display and Samsung Display are speeding up their investment process on extension of LCD factories in China.

Samsung Display is focusing on operating its LCD factory in Suzhou next year by finishing up investment in installation and stability process by end of this month. It went into a construction of additional production line since last April that can produce 65,000 sheets of 8th-generation (2200x2500 mm) glass substrate per month. This is their 3rd extension and last investment.

Samsung Display started the operation of an extension with the size of 17,000 sheets per month along with completion date in October of 2013. It added extra 48,000 sheets last year and it will be able to have a production capacity of 130,000 sheets if all extensions are completed.

LG Display also finished its 2nd additional extension to its LCD factory in Guangzhou and is examining 3rd extension. It started its operation of an extension with the size of 60,000 sheets of 8.5th-generation substrate per month along with the completion date in last July and is currently operating an extension with the size of 90,000 sheets by adding extra 30,000 sheets. It is planning to operate a factory with the size of 120,000 sheets per month by pushing for additional 30,000 sheets by end of this year.

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<Chinese LCD factories that Korean display businesses built will operate at maximum starting next year. Korean businesses are also increasing their rates of operation to correspond to Chinese display businesses aggressively increasing their outputs. It is predicted that there will be a continuation of phenomena of excess demand as world’s display manufacturers are rapidly increasing their supplies.>

“We are aiming to operate a factory with the size of 120,000 sheets per month by end of next year. We are planning to decide on 3rd investment according to market condition, and it is highly likely that we will proceed the installment of extension by end of this year.” A person affiliated with LG Display said about its future plan with the factory.

If production capacities of Samsung Display and LG Display are added together then it is equal to 250,000 sheets, which is about 33% of total output of 8th-generation LCD panels in China. Importance of Korean’s panel businesses’ production will decrease if BOE’s 10.5th-generation and 8.5th-generation factories start operating after 2016. Chinese government is focusing on raising degree of self-sufficiency of LCD panels up to 80% by this year and is continuously expanding Chinese businesses’ outputs.

Display Search is forecasting that output of Chinese 5th-generation and over LCD panels will more than double from 37 million m2 from last year to 81 million m2 in 2017. It is predicted that phenomena of lack of LCD supply will continue until 4th quarter of this year as the size of LCD panels is increasing.

“Chinese businesses are expanding outputs of LCD factories this year and next year. If Korean businesses want to compete against Chinese attacks in a long-term, they need to construct another LCD factories or consider expanding large-sized OLED market.” A person in the business circle said about what Korean businesses need to do to compete against Chinese businesses.

*Present conditions of Samsung Display and LG Display’s LCD factories’ extensions in China are as follows.

•Completion date of Samsung Display and LG Display’s extensions are October of 2013 and July of 2014 respectively.

•Size of 1st production of Samsung Display and LG Display’s extensions are 17,000 sheets per month and 60,000 sheets per month respectively

•Size of 2nd production of Samsung Display and LG Display’s extensions are 48,000 sheets per month (operated since in 4th quarter of 2014) and 30,000 sheets per month (operated since 1st quarter of 2015) respectively

•Size of 3rd production of Samsung Display’s extension is 65,000 sheets per month (targeting end of 2015 for the start of its operation)

•3rd production of LG Display is expected to be invested in this year

•Total size of Samsung Display and LG Display’s extensions are 130,000 sheets per month and 120,000 sheets per month respectively

Staff Reporter Sung, Hyeonhee | sunghh@etnews.com