Corning Inc, the world’s biggest supplier of glass substrates used in LCD panels, yesterday said that recent inventory replenishment in the supply chain bodes well for the second half of the year, reinforcing its forecast of strong market demand this year.
To cope with the significant rebound in glass demand, Corning has increased capital spending for this year to US$1 billion, from between US$600 million and US$700 million, and decided to restart plans to expand its Taichung plant. Those plans were halted last year because of an industrywide downturn.
“Just recently, we decided to spend again to make sure we can meet the needs of our customers, and we see that the market is continuing to grow at a very significant pace,” Allan Eusden, chairman and president of Corning Display Technologies Taiwan Co, told a media briefing at the company’s booth in the annual flat-panel display and photonics trade show in Taipei.
“And it is important time for us to continue investing here in Taiwan,” Eusden said.
Corning did not disclose how much it planned to invest.
The company expects global glass demand to grow by between 18 percent and 27 percent this year to 2.9 billion square feet (269.4 million square meters) and 3.1 billion square feet, driven primarily by TVs and other end products, including Apple Inc’s iPad, Eusden said.
Asked about the impact of the European debt crisis, Eusden said the company had not felt its impact on glass demand, but would keep monitoring the situation over the next few months.
Corning also saw positive signs ahead. Eusden said buyers had been building inventory in the second quarter, signifying confidence in demand in the second half of the year.
In April, Corning raised its forecast of global LCD TV sales to 177 million units this year from its previous estimate of 171 million units. Corning also showcased its latest line of thin glass substrates — the EAGLE XG Slim — at the trade fair, with commercial production starting this month. With the thickness reduced to 0.4mm from 0.5mm, it’s designed for portable devices such as handsets and notebook computers.
Corning said it started low-volume shipments to customers, including LCD panel makers and major cellphone makers, in January. It has also sent samplers to TV makers, paving the way for mass production of the 0.4mm thin glass substrates for larger screens possibly next year.
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