Back Online Corning announced that it has repaired its damaged LCD glass plant in Japan that was damaged due to an earthquake last month. The company estimated the revenue impact of the damaged plant of about US$22 million. On a calendar basis, demand for LCD glass is stronger in the second half. The reason being that demand for LCD goods such as LCD TVs, LCD monitors, notebook PCs, netbooks, etc. are strongest in the fourth quarter. The entire LCD supply chain is preparing for a strong fourth quarter and the LCD glass supply disruption in Japan didn’t help, but how big was the impact to the overall supply chain?
Co-Location There are only two major LCD panel manufacturers in Japan: Sharp and IPS Alpha. Although Sharp is ahead of its competitors in terms of LCD fabrication plant generation at 10 the overall glass area input capacity is small… [private] relative to giants like LG Display, Samsung, AU Optronics (AUO) and Chi Mei Optoelectronics (CMO). IPS Alpha is also quite small in terms of glass usage. Corning’s Japan-based LCD glass supply disruption would have certainly impacted Sharp and IPS Alpha but would have had minimal impact on the four largest LCD suppliers. Co-location of LCD glass manufacturing began with G6 (Gen. 6) TFT LCD fabs as the size of the LCD glass substrates made it difficult and costly to transport over long distances. A large portion of LCD glass demand is supplied locally in Japan, Korea and Taiwan. [/private]
Source: The Inquirer