NEG’s liquid crystal display (LCD) glass factory in Takatsuki, Japan has suffered a five hour blackout, according to local media Nikkei.
Production is expected return to normal after the first quarter of 2021.
The factory was halted from the blackout on December 10.
NEG produces glass substrates for use in 8.5th generation or smaller LCD panels at its Takatsuki factory. It accounts for around 15% of its total production capacity.
It has other glass factories in Japan, China and South Korea.
The company competes with Corning, AGC and NHT for glass used in LCD panels.
NEG reportedly sent notification of the blackout to its customers, including LG Display.
The blackout damaged three melting furnaces. These furnaces will be repaired in the first quarter of 2021.
The halting of the Takatsuki factory will cause shortage for glass substrates for 8.5, 7,5, 6 and 5th generation LCD panels. These will affect TVs, monitors and IT products with screen smaller than 65-inches. This may cause LCD panels to rise further than it already has.
In the second half of 2020, TV panel prices rose 60% compared to the first half. According to market research firm Witsview, LCD prices for 55-inch TV was US$105 in mid-2020 but has increased to US$164 as of November.