Fifth-generation LCD factory comes on stream

17 Jun 2002

LG Philips LCD has begun production of the world's first fifth-generation (above 1 m per side of glass substrate) TFT LCD plant in South Korea.

It will produce screens for 15 and 18 inch desktop monitors and 15 inch laptops, as well as larger 18-25 inch LCD TVs. Production in the first ramp-up phase will be 30,000 sheets measuring 1000 x 1200 mm per month, rising to full production of 60,000 sheets per month by year end.

The new plant covers an area of 200,000 m2 and, according to market research firm DisplaySearch, from next month LG Philips LCD will account for 15.2% of world glass production, more than any of its competitors.

Philips Electronics expects prices of LCDs to increase sharply this year as world demand for monitors, laptops and LCD TVs goes through the roof.

Bob Kobes, vice-president of PC peripherals at Philips, quoted in the South China Morning Post, said that in the next 9-12 months, prices of LCD products would spiral dramatically due to the shortage.

"There are two Korean makers and six Taiwanese makers investing in LCD panels," he said. "Sharp and Hitachi are the only two Japanese makers that have announced investment in LCDs. So we expect the Japanese dominance in LCD market share to decrease while Korea and Taiwan will lead."

He stressed, however, that by 2004 there would be an oversupply of LCD panels, which would cause a major restructuring of the industry, and that only five LCD manufacturers would survive after 2005.