Photo: LG Display’s Paju LCD Cluster
G8 LG Display (NYSE: LPL) plans to increase its eight-generation LCD fabrication plant to full utilization in late May. The company just began volume production at its G8 LCD fab in March. Achieving full capacity within just two months of commencement is quite fast. FYI, LG Display’s G6.5 fab (G6 Extension) started operations in April with an initial input capacity of 15K glass substrates per month and will mostly be used to produce LCD monitor and notebook PC LCD panels.
Full Utilization LG Displays’ overall utilization in the first quarter of 2009 was 93%, which can be considered at full utilization. There is pressure to bring inventory back up to normal levels at the brand and retail levels and leading LCD suppliers have been increasing their utilization rates. LG Display’s G8 fab will mainly be used to manufacture LCD TV panels, which have experienced strong demand.
Shortage According to LG Display due to component shortage constraints such as glass the overall LCD utilization rate will range from 80 to 85 percent in the second quarter leading to about a 5 percent shortage situation. LG Display is expecting the overall LCD TV industry to achieve year over year growth in the high teens for 2009.