Corning said it was expanding production at its Gen 10.5 (2,940x3,370) liquid crystal display (LCD) glass substrate factories in China.
The company said demand from TV and IT products continues to be solid, with demand increases for large-sized TV remaining robust. Demand for 75-inch TV grew over 60% in 2020 from the previous year.
Gen 10.5 had the best production efficiency for large TV substrates and the company’s plans in Guangzhou and Wuhan can react to the expanded demand, Corning said.
Corning also has Gen 8.5 glass substrate plants in Beijing and Chongqing.
Company CFO Tony Tripeny said the company expects sales of US$3 billion to US$3.2 billion in the first quarter of 2021, an increase of over 20% from the first quarter of 2020 when it recorded US$2.5 billion in sales.
Earlier this month, BOE had said it plans to operate its second Gen 10.5 LCD factory at Wuhan at full capacity within the first half of 2021. BOE has another Gen 10.5 LCD factory at Hefei. Both plants have a production capacity of 120,000 substrates per month.
LCD panel price increase that started in the second half of 2020 is continuing. Meanwhile, the pandemic has delayed factory operation plans of BOE, TCL and HKC. At the same time, Samsung Display and LG Display are lowering their LCD production volume, causing the LCD price hike.
Corning’s display technologies business, which produces glass substrates, posted US$841 million in sales in the fourth quarter, a rise of 6% year-on-year.
The company recorded US$3.4 billion in total fourth quarter sales, up 19% from the same time period a year ago. Net income for the quarter came to US$252 million.
For the entire year of 2020, Corning recorded US$11.3 billion in sales, a drop of 2% from 2019. Net profit was US$512 million, down 47% from a year ago.