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Are we nearing the end of LCD manufacturing efficiencies?


http://www.digitimes.com/displays/a20070117VL201.html


LG.Philips LCD has stated that it will not invest in eighth-generation (8G) TFT LCD production. The maker also recently detailed the capacity expansion for its 5.5G and 7.5G plants at an investors conference.


Although the facilities at LG.Philips LCD has enough space for an 8G plant, the company is not spending any money to develop an 8G plant and beyond since it is not cost efficient to produce 8G panels and the company does not foresee demand for a large volume supply of 50-inch and-above-panels, according to Ron Wirahadiraksa, president and CFO of LG.Philips LCD.


Nevertheless, the company will still produce 52-inch-and-larger panels from its current plants, Wirahadiraksa said.


In March 2006, market research firm Displaybank reported LG.Philips LCD has fixed the size of its 8G glass substrate at 2,200×2500mm and each substrate can be cut into eight 47-inch panels or six 55-inch panels, with the substrates to be possibly larger than those from Sharp.


Instead of building a new next-generation plant, LG.Philips LCD will focus its capex on the construction of P8 (5.5G LCD plant). Equipment will come in between the first quarter and second quarter of 2008. Initial monthly capacity will be 30,000 glass substrates and the capacity will be ramped up in three stages to 90,000 in the second quarter of 2008, Wirahadiraksa indicated.


In addition, the overall capacity from the panel maker will increase more than 30% this year and P7 (a 7.5G plant) will be the focus for the capacity increase, Wirahadiraksa indicated. The monthly capacity of P7 is expected to reach 90,000 units in the first half of 2007, he added.
 

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Quote:
Originally Posted by hoodlum /forum/post/0


Are we nearing the end of LCD manufacturing efficiencies?

http://www.digitimes.com/displays/a20070117VL201.html


LG.Philips LCD has stated that it will not invest in eighth-generation (8G) TFT LCD production.

Sharp already has 8 Gen running and is increasing its capacity, Sony-Samsung 8 Gen will come online this year. It seems LG was squeezed out of the battle of the giants.
 

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There is serious doubts in the industry that anyone can make money doing it. If a new Gen 8 costs $3 billion, how many sets can you sell to pay off the mortgage. The answer to many is "not enough". There will probably be consolidations in the industry and increasing use of "someone else's money". If you can buy a Gen 6 in bancruptcy court for $750 million (see BOE Hydis), your cost structure is much lower.


Overall, there are serious issues with the industry of making LCDs to nothing of selling LCD TVs.
 

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Quote:
Originally Posted by irkuck /forum/post/0


Sharp already has 8 Gen running and is increasing its capacity, Sony-Samsung 8 Gen will come online this year. It seems LG was squeezed out of the battle of the giants.

I am pretty sure there is a pretty strong corporate division between LG and LG Philips. LG has some controlling interest in Philips, thus the LG Philips.

This is what I have been told, anyway. Who knows? Alliances between makes is so common nowadays.
 
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