WorldWide Tech & Science. Francisco De Jesús.
Samsung Electronics reportedly has said it may start construction of its 7.5G panel plant in China as early as in May 2011 with mass production of panels likely to begin in early 2013. If the plan materializes, Samsung will be the first foreign firm to kick off construction of next-generation panel lines in China.
Another Korea-based panel maker, LG Display, is expected to follow suit to begin construction of its planned 8.5G panel plant in China soon, sources at Taiwan-based flat panel makers asserted.
The Korea makers, who had beat their rivals in Taiwan, mainly AU Optronics (AUO) and Chimei Innolux (CMI), to secure licenses to set up next-generation panel plants in China, will further strengthen their lead in the race to ramp up supply capability among all foreign flat panel makers in China.
Although AUO has landed permission to team up with China-based InfoVision Optoelectronics (IVO) to set up a panel plant in China, AUO has not yet decided whether it will be a 7.5G or 8.5G plant, the sources pointed. CMI has not yet received permission to either cooperate with local companies or set up a new plant of its own in China.
Japan-based Sharp, after its application to set up an 8G flat panel plant in China was rejected, has tied up with CEC Panda aiming to set up a 10G panel plant in China. Industry sources in Taiwan expect the Sharp-CEC Panda team will start construction of the 10G plant in June at the earliest.
Although the two 8.5G plants being built by China-based BOE Technology and China Star Optoelectronics Technology (CSOT) are both expected to commence official operations in the second half of 2011, the two 8.5G plants are unlikely to ramp up their output substantially until the end of 2012 or in early 2013 due to a lack of experience in volume production and sufficient technology capability, said the sources.
Taiwan makers currently still enjoy some advantages in the China market, but challenges posed by Korea- and China-based rivals are growing, the sources commented. Their competitors' next-generation fabs are coming online gradually, and Samsung and LG Display have extra competitiveness coming from their brand names, which will enable their shipments to the global market.
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