HKC Levels Construction Site for Gen 11 Fab
October 01, 2018
HKCis in the process of leveling the construction site for its Gen 11 LCD plant in Zhengzhou, China, which is expected to take about one month at which point actual construction of the fab will begin. The HKC project agreement, which was signed in April is projected to cost $5.8b US and is targeted to be finished by Q120, assuming construction is completed in 11 months, leaving five months for equipment move in, an aggressive schedule. HKC, a latecomer to the display market also has a Gen 8.6 fab in Chongqing, which is in operation (phase1) and another Gen 8.6 fab under construction in Mianyang. Currently their capacity is limited to the phase 1 lines in Chongqing, which is running 20,000+ sheets/month, producing a run rate of ~2m units/year depending on mix and yield. Once all of HKC’s fabs are on line and running at full capacity (2023), the company should have a 3.2% share of overall raw LCD capacity and a 9.1% share of the Gen 10+ LCD capacity market.
Sharp celebrated completing the main structure construction phase of its Gen 10.5 LCD fab in Guangzhou, China. Lauding the construction team, that faced difficult geological conditions and bad weather, the Chairman of Innolux, which is part of the Hon Hai/Foxconn conglomerate that owns Sharp, promised that such cooperation among contractors would continue throughout the project. The Guangzhou plant will have a capacity of 90,000 sheets, built out in two phases, the first of which is expected to be completed in September’19 and is being advertised as the largest Gen 10.5 production line in the world.
Figure 1: Sharp’s Gen 10.5 LCD fab (under construction)