Power Disruption Corning announced that its LCD glass plant located in the Central Taiwan Science Park, Taichung, Taiwan experienced a power disruption over the weekend from October 17 through October 18. The power disruption affected some of its glass manufacturing operations. The supply of LCD glass will have a negative impact on volume shipments in the fourth quarter for Corning.
The majority of our Taichung glass production continues to operate normally. However the power disruption caused the shutdown of several of our glass melting tanks. We are in the process of determining how much glass melting capacity was affected, the time to repair the tanks, and the impact on our glass volume available for customers. We are doing everything possible to accelerate repairs and leverage our worldwide supply chain to secure additional glass supply.
Flat in Q4 That’s according to James B. Flaws, vice chairman and CFO of Corning. Initial estimates by the company put fourth quarter glass volume as sequentially flat or slightly down from third quarter shipments.
AU Optronics Corning’s power disruption will mainly affect Taiwan-based LCD manufacturers that operate G6 and G7 production lines for the short term. AU Optronics (AUO) is expected to experience the most impact. According to AUO there has not been any shipment delay notifications for LCD glass substrates from Corning.
Timing About 60% (and growing) of LCD glass demand comes from LCD TV applications. With the long supply chain associated with building LCD TVs, most of the demand for LCD glass as well as LCD panels are dropping now. The LCD TVs that will be on shelves are now being integrated and distributed through the channels. Corning’s power disruption and eventual negative impact on LCD glass volume shipments might have come at the right time as overall demand for LCD glass dwindles.