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Construction of 10.5/11G Fabs Slowing
October 29, 2018
 
China-based flat panel makers Chongqing HKC Optoelectronics Technology (HKC) and China Electronics Corporation (CEC) both reportedly have held off on their original plans to build 10.5/11G LCD fabs due to concerns of excess capacity leading to questions of financing and return on equity. Foxconn Electronics also scaled back its Gen 10.5 LCD fab plans in Wisconsin to a Gen 6 fab. The number of 10.5/11G fabs that are scheduled to come online during 2018-2021 could be reduced from nine to six. Of the six remaining 10.5/11G fab projects, 
 
  • China's BOE Technology has two. The company's first 10.5G fab, located in Hefei, entered volume production in the first half of 2018. Its second 10.5G line, to be located in Wuhan, is slated for volume production in 2020 with a capacity of 120,000 substrates a month. 
  • China Star Optoelectronics Technology (CSoT) plans to build two 11G lines, with the first slated to start commercial operations in March 2019 with a capacity of 140,000 substrates. CSoT has signed a contract with the local government in Shenzhen to set up its second 11G fab in the southern Chinese city, with plans to ramp up production in 2021 with a capacity of 90,000 substrates. 
  • Sakai Display Products (SDP), a subsidiary of Foxconn, is currently building a 10.5G IGZO TFT-LCD panel plant in Guangzhou, China, which is slated to start commercial operations in September 2019. 
  • LG Display is building its 10.5G P10 fab in Paju, Korea. The P10 fab will focus on production of ultra-large OLED panels when it kicks off volume production in 2020, indicated the sources.
Sakai (Sharp) also has an existing 10G fab in Japan.

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