Display manufacturers in South Korea and China are going to start operating their new 8th generation LCD lines starting from second quarter and industries area interested on whether or not this will open up 50 inches or bigger LCD markets where supply shortage phenomenon was very clear. However as old low generation production lines are discontinued one after the other, it is predicted that range of increase in output of entire LCDs based on area would not be too big. It is also predicted that reduction in price of panels will limitedly appear through large panels.
LG Display (Paju, Guangzhou), BOE, Innolux, and HKC are going to start operating their new 8th generation LCD lines starting from second quarter. They are going to slowly start increasing rate of operation by operating these new lines early starting from this month and prepare mass-production system. If they do not face any problems regarding yields, amount of supply of large LCD panels will greatly increase starting from second half. As all of these companies except HKC have experiences in operating 8th generation LCD lines, it is likely that they will not face any visible problems regarding yields.
LG Display is planning to make supplemental investments into its 8th generation line that is located in Guangzhou, China. Currently this line can produce 30,000 panels per month and it will be able to produce total of 180,000 panels per month when investments are finished by end of this year.
BOE is also preparing to start operating its 8th generation B10 Line in second quarter. After carrying out first step of investment that can produce about 75,000 panels per month sometime during second quarter, it is going to operate starting from 2018 after carrying out additional investment that can also produce about 75,000 panels per month. It is planning to start operating its 10.5th generation B9 Line in early 2018.
Taiwan’s Innolux is going to start operating its new 8th generation line, which is newly constructed in Kaohsiung, shortly and this line will be able to produce 45,000 panels per month.
HKC, which is mass-producing 8th generation LCD panels for the first time, is planning to start operating its line in second quarter. Since this is its first time, there is a chance that it might face problems regarding yields. HKC has established a line that can produce about 70,000 panels per month.
Although there are many 8th generation lines that are going to start operating soon, it seems that this will not have too much impact on increase in output of entire LCDs since there are 5th generation and 8th generation fabs that stopped operating in last year and there are also lines that are going to stop operating in this year. However as new investments can be actively utilized due to continuous increase in number of demands for panels that are 50 inches or bigger, industries expect that problems regarding lack of supply and demand of large LCDs can be somewhat resolved.
Panasonic’s 8th generation line, Samsung Display’s L7-1 (7th generation), JDI’s 4th generation line, LG Display’s 3rd generation line, AUO’s 3rd generation line, and Sharp’s 3rd generation line stopped operating in last year.
Market research company called IHS Market analyzed that 4.8 million m2, which corresponds to 2% of production capability of area of entire LCD in 2016, was reduced as low generation LCD lines stopped operating.
Samsung Display is planning to stop operating its L6 Line (5th generation) in second quarter of this year. It can produce about 105,000 panels per month and this amount corresponds to 6% of this year’s yearly LCD production capability. Although there is increase in supply of LCDs, it is analyzed that increase in amount of areas of entire LCDs that are supplied will be less than 1% as this increase in supply of LCDs corresponds to only 5% of annual average.
Staff Reporter Bae, Okjin | withok@etnews.com
