Panel industries are targeting 70-inch LCD TV markets as their main targets for 2018. If 55-inch and 65-inch panels were at the center of TV markets this year, it is likely that 65-inch and 75-inch panels will be the ongoing trends next year.
According to industries on the 15th, LG Display and Samsung Display are expanding applicability of MMG (Multi Model Glass) in order to prepare for expansion of 70-inch LCD markets in 2018. Although China’s BOE is planning to operate its 10.5-inch line in 2018, South Korean panel manufacturers are planning to increase production efficiency of 65-inch and 75-inch panels as much as they can from their current production facilities since they only have 8th generation lines.
Usually single cut method that produces many panels with just one size from one mother glass is used. In case of single 8-inch mother glass, 16 32-inch panels can be produced from single mother glass. 8 48-inch panels and 6 55-inch panels can be produced respectively from single mother glass. Ratio of obtaining panels from single mother glass is high as area that is thrown away from a panel with corresponding size is under 10%.
On the other hand, 3 65-inch panels and 2 75-inch panels can be produced respectively from single 8th generation mother glass. However its ratio of obtaining panels from single mother glass is low as it is about 64%. Thus South Korean panel manufacturers are planning to apply MMG method that can print out panels with at least two different sizes by appropriately arranging 65-inch and 32-inch panels on single mother glass.
Although MMG can increase ratio of obtaining panels from single mother glass production yield can be lowered during a process of rearranging panels. Amount of monthly supplies is reduced as time that takes for final products to be produced is also lengthened.
Industries are estimating that production yield will be reduced by 5 to 6% if MMG method is applied. Depending on technical skills, stability on manufacturing processes, and experiences, production yield can be further reduced up to 20% maximum.
LG Display is the world’s first business to introduce MMG method and it is seen to have stable MMG technologies and experiences.
If MMG method is applied, single 8th generation mother glass can produce 2 65-inch panels and 6 32-inch panels or 2 75-inch panels and 2 49-inch panels.
In order to expand 65-inch and 75-inch panel markets, LG Display is looking into a plan that will apply MMG method to entire 8th generation line that is located in Guangzhou. It has mass-produced 65-inch and 32-inch panels from its line in Guangzhou through MMG method and it is also producing 75-inch and 49-inch panels through MMG method starting from this year.
By estimating that amount of supplies of 75-inch panel will expand in 2018, it is looking into a plan that will apply MMG method to entire line instead of single cut method that is used to produce 49-inch and 55-inch panels in China. It already applied MMG method to more than half of its production lines located in Guangzhou.
Samsung Display is also mass-producing 65-inch and 32-inch panels from its lines in Suzhou and L8-1 line in Tangjeong. It is mass-producing 75-inch panels from its L7-2 line in Tangjeong through single cut method and is increasing amount of monthly output. It is heard that Samsung Display is discussing about a plan that will expand applicability of MMG method to L8-1 line and its lines in China. More than half of its Suzhou lines are producing panels through MMG method.
Both businesses are estimated to mass-produce largest amount of 65-inch and 75-inch panels this year. Market research company called IHS Market analyzed that LG Display and Samsung Display increased their production capacities that allow them to produce 30,000 and 50,000 75-inch panels per month respectively. Their outputs will be increased further if they expand applicability of MMG method.
Although BOE and CSOT from China have also applied MMG method to their lines, they are mostly using it for panels that are smaller than 43 inches because they still do not have technologies that are able to produce large panels and they are mostly targeting 40-inch panel markets.
Taiwan’s AUO is currently looking into a plan that will allow AUO to produce 65-inch and 55-inch panels through MMG method. It will be able to produce 3 65-inch panels and 2 55-inch panels respectively from a 8th generation mother glass.
“Although downward trend of prices of panels that are smaller than 50 inches is steep, downward trend of prices of panels that are at least 55 inches, which are the mainstreams of current TV markets, is gradual and their prices are also relatively high.” said a representative for an industry. “Growth of 65-inch panel markets especially 70-inch markets will stick out in 2018 due to requests from TV set manufacturers that are looking to break through algebraic growth of TV markets, which will be hard to expect, with super-large premium products.
Staff Reporter Bae, Okjin | withok@etnews.com