CSoT Breaks Ground on 2nd Gen 10.5 Fab with Capacity for OLED Panels
November 19, 2018
CSoT began construction of their 2nd Gen 10+ display fab, T7, which will produce both OLED and LCD TV panels beginning in early 2021. The cost of the fab is expected to be $6.14B US, but the final details of how the fab will allocate production remains to be determined. The panels will be based on IGZO backplanes and will be focused on 65” and larger sizes. CSoT has been collaborating withTianma, Kateeva and OLED material suppliers Merck, Dow/DuPont and Sumitomo on the development of IJP for large panel OLED displays. The mixed-use fab capacity is between 90,000 sheets/month and 105,000 sheets/month with 20,000 sheets/month dedicated to OLEDs. CSoT has stated that the goal is IJP but they will use VTE if printing is not ready. The fab itself is jointly owned by TCL through its CSoT subsidiary (59%), the Shenzhen Major Industrial Development Fund Phase 1 (36%), a state funded special use fund created for CSoT, and Samsung Electronics (5%). Samsung also owns a stake in other CSoT fabs.
Capacity for Gen 10.5 LCD TV panel production is ramping over the next 3 years, with the increase peaking at the end of 2019, but continuing at lower levels through 2022. Chinese state, provincial, and local governments have financed much of the Gen 10.5 expansion by Mainland producers, but specialized financing by governments in South Korea also has made the construction of Gen 10.5 capacity a bit easier to finance, albeit, without much regard for the long-term effects of such capacity or the potential for profitability under a variety of economic, financial, and political scenarios.