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BOE to Expand Gen 10.5 LCD Fab
BOE announced its intent to expand the capacity of its Gen 10.5 LCD fab in Wuhan. The $3.77b US project will add an additional 25,000 sheets/month to the fabs current 90,000 sheet/month stated capacity. The project will be funded by existing BOE shareholders, who in this case are government funded partnerships and local city level development organizations. The expansion is positive for Corning, whose co-located Gen 10.5 glass plant is the primary source of substrate material for the fab, with much of the Corning capacity being funded under similar circumstances to BOE’s funding sources. The move comes when large area capacity is in a glut situation. In the longer term, the expansion would encourage Samsung and LG to shut down their large area fabs as prices decline. An increase in Gen 10.5 capacity will also put margin pressure on the Taiwanese.
BOE announced its intent to expand the capacity of its Gen 10.5 LCD fab in Wuhan. The $3.77b US project will add an additional 25,000 sheets/month to the fabs current 90,000 sheet/month stated capacity. The project will be funded by existing BOE shareholders, who in this case are government funded partnerships and local city level development organizations. The expansion is positive for Corning, whose co-located Gen 10.5 glass plant is the primary source of substrate material for the fab, with much of the Corning capacity being funded under similar circumstances to BOE’s funding sources. The move comes when large area capacity is in a glut situation. In the longer term, the expansion would encourage Samsung and LG to shut down their large area fabs as prices decline. An increase in Gen 10.5 capacity will also put margin pressure on the Taiwanese.
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