Corelle will set up a factory in global LCD industry center is expected to go to China in China

With Shandong Dongying Shengda the first domestic TFT LCD six generation line, Kunshan dragon third TFT LCD five generation line of BOE, SVA open, and further improve the production capacity, as an important material upstream of the world's largest glass substrate plant Corelle finally decided to set up factories in Chinese, LCD this panel factory, not only accelerated the Chinese, LCD industry environment is mature, also strengthen the Chinese position in the global supply chain in LCD.

Days ago, Corelle CEO WendellWeeks told the "Financial Times" interview, the official said, Corelle is currently considering the establishment of the first glass substrate plant in the mainland. Previously, Corelle shows the Ministry of science and technology Chinese President Ke Kangyi in the 2005 Chinese international plane display equipment, materials and accessories exhibition also said publicly that the investment of more than $1 billion, in the near future to build a production base in mainland china. But the specific site is still in the research stage.

In fact, Corelle in China is not the first time the news site to set up factories, according to informed sources, as early as March, when Corelle had in Shanghai and Beijing were discussed, then the BOE, SVA two LCD giants competing by the two government out of various preferential policies, in order to attract Corelle settled.

Why Corelle site so affecting the two giant nerve? According to BOE market sources, in the entire TFT - LCD industry chain, the main raw materials of liquid crystal panels, including glass substrate, color film, backlight, etc., which accounted for 60% of the cost of raw materials. Glass substrate which is the most critical, but also the largest proportion of the cost of spare parts. It is understood that currently only three companies to the glass substrate of a liquid crystal panel used in the production, they are the United States, Japan, South Korea LNG Corelle asahi. While the United States Corelle occupy more than 50% share of the global market of glass substrate, and Asahi and South Korea LNG are not yet to Chinese market investment plan, Corelle, SVA and BOE to become the object of contention.

In addition, with the open around the LCD production line, glass as a ring chain is also growing. According to the LCD industry insiders, in 2004 a worldwide shortage of LCD is composed of a glass factory explosion caused by the emergence of countries, causing a lot of LCD panel glass supplier maintenance immediately shut down the production line, which was the LCD panel glass supply broken gear.

Corelle to set up factories in the LCD message is undoubtedly in the situation of the BOE, SVA hit a shot in the arm. Corelle set up factories in China to accelerate the polymerization effect of the mainland LCD industry." President Gu Peizhu told reporters that SVA prior to the TFT industry, the effect of polymerization of LCD high risk of this industry is very important.

BenQ Product Manager Zhu Jun said that at present the biggest bottleneck, China panel manufacturers development that is the lack of supporting industries and LCD talent, "is different from other industries, LCD raw material transportation cost is very high, if not solve this problem, Chinese, panel enterprises cost advantage is difficult to be reflected.". With the relevant panel spare parts manufacturers in the mainland gathering, the future of the global LCD industry center is expected to shift from the current South Korea to china. According to reports, the backlight module, LCD module and other manufacturers have set up factories in the mainland, and 3M also previously announced, in preparation for Chinese, or fourth of its global R & D center, R & D investment prism sheet, optical film and other materials. Taiwan's general manager Chen Xuanbin, also said that the mainland panel factory through capacity expansion and yield improvement, follow-up will supply of LCD monitor panel impact, and the impact is mainly to second tier panel factory. CMO spokesman also said that the mainland panel factory through yield improvement, its effect on subsequent LCD monitor panel of the supply chain will not be ignored, and is expected in the fourth quarter of 2005, you can see the effect of.