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LGD Looks to China for Future Supply of Substrates
April 15, 2019
 
LG Display and Dongxu Optoelectronics signed a non-binding cooperation agreement for glass substrates, cover glass, and new material development.  Dongxu and subsidiary Xu Hong Optoelectronics are arguably the 4th largest glass substrate producers worldwide, behind Corning, Asahi and NEG running 4 glass lines in China, using both float and overflow technology focusing on color filter glass for LC displays, along with a number of post-production facilities.  Dongxu also produces grapheme films and anti-glare products and is researching flexible substrate materials.
 
The agreement is “intentional” and not legally binding according to the company, but they expect to sign a more definitive agreement once LGD’s requirements are more specifically laid out.  While it remains murky, but LGD buys LCD glass from all three non-Chinese suppliers and NEG has been their key supplier. Chinese glass producers have been working toward becoming primary suppliers to both Chinese and worldwide display producers but have struggled with consistency, as specifications and tolerances are extremely tight.  Chinese glass suppliers should  gain share as local and provincial governments that have subsidized Chinese Fabs ‘encourage’ panel producers to use Chinese suppliers However, it is unlikely that they will be able to match Corning’s R&D capabilities, which averages 8.3% of sales over the last 5 years and 8.8% of sales over the last 10.  From: SCMR, LLC

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