Investment in higher-generation TFT lines on the upswing

Higher-generation TFT-LCD production in mainland China is getting renewed interest from investors in Japan, South Korea and Taiwan, with major panel display makers financing various domestic endeavors.

Japan’s Sharp has signed an agreement with the Nanjing government and China Electronics Corp. to put up a 6G TFT-LCD line in this city in Jiangsu province. The project, which costs about $2 billion, was started in November 2009 and will be online by March 2011. It is forecast to roll out 60,000 to 80,000 glass substrates per month, and will produce LCD panels for 19 to 22in monitors and 26, 32 and 37in TVs. An 8G line and an R&D center are also on the drawing board.

LG of South Korea has announced its cooperation with Guangzhou Economic and Technological Development Zone management to build a $4 billion 8.5G assembly line. Samsung, meanwhile, will collaborate with authorities in Suzhou, Jiangsu, in putting up a 7.5G TFT factory there.

Taiwan also plans to come onboard the high-generation line in the mainland. AUO and Chi Mei are currently negotiating with local authorities to lift the limit on TFT line investment.

Foreign players’ entry into the domestic industry was previously hampered by failed attempts of some local companies due to large investment risks. Shanghai SVA NEC and Irico were the first to venture in the 5 and 6G technologies, respectively. The two suppliers’ projects are now on hold.

BOE’s achievement in the line paved the way for major flat-panel display makers to reevaluate their reluctance in putting up plants in the mainland.

The company’s 8G factory, to be operational by the third quarter of 2011, is forecast to roll out about 90,000 units of 2,000×2,500mm glass substrates. It will also produce arrays, color filters, cells and modules targeted at flat panels for 26, 32, 47, 52 and 55in TVs. Moreover, its 6G line in Hefei, Anhui province is being fast-tracked to meet the production deadline set for 4Q10.

BOE is currently running one G5 and one G4.5 line each in Beijing and Chengdu, Sichuan province.

Meanwhile, Longfei’s success in upgrading its 7.5G facility in Kunshan, Jiangsu, to 8.5G strengthened the mainland’s position as an emerging sourcing hub for higher-generation TFT-LCD panels.

Currently, the mainland has five or six 7.5, 8 and 8.5G, two to three 6G, four 5G and four 4.5G TFT-LCD manufacturing facilities.