CMO Invest $2.5-$3.1 Billion for G6(?) Fab

The focus will be 32″ and 37″ LCD panels, so I am guessing it will be a G6 fab with rough dimensions of about 1500 x 1850mm. CMO will invest a very large amount of money to continue upgrading its LCD production capacity at larger sizes primarily geared toward LCD TV applications. Currently 32″ is the most popular but that will start to shift to 37″. And this is not because we just want bigger. This is because 37″ prices will fall to $1499 or lower and very soon. CMO will install equipment in 2H’07 and start mass production in 2008 with a total glass substrate input capacity of 180,000 units per month.

Hmmm. By 2008, I would think 40″-class LCD TVs would be the majority as those prices would have hit $1499 by then. I think CMO is too late and should invest in something like a G8, similar to S-LCD and Sharp. At least, if CMO does that, it will be able to experience high profit margins for 50″-class LCD panels for a while.

Source: Reuters

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