Corning, Sharp to Share Plant

Corning Inc. announced yesterday it will spend $795 million over five years to collocate a glass manufacturing facility at Sharp Corp.'s new plant in Sakai City, Japan.

Corning said it plans to spend nearly half the money -- $400 million -- on the facility in 2008 and expects to have sufficient product be able to meet Sharp's plan to begin mass production of LCD panels for large TVs at the new fab by March 2010 (See "Sharp Plans New LCD Plant").

The investment will allow Corning to be the first manufacturer of TFT-grade Gen 10 substrates and the primary supplier of Sharp’s Gen 10 glass, the company said. At 2850 x 3050 mm, Gen 10 will be the largest LCD glass substrate available. Gen 10 will be made of Corning's Eagle XG brand, the first LCD glass to contain no added heavy metals or halides, and touted by Corning as the most environmentally friendly LCD glass on the market.

Artwork provided by Corning showing six 65-inch panels on a Gen 10 glass substrate. (Image: Business Wire)

“Very large-size glass substrates offer superior economies of scale to display manufacturers, ultimately helping to make large LCD TVs more affordable for consumers,” said Peter F. Volanakis, president and chief operating officer. “Developing substrates this large will represent a major milestone in the history of the LCD industry.”

In 2006 Corning signed a long-term supply agreement with Sharp for its Gen 8 fab, but Corning said this is its first major collocation with a customer. “We are pleased to continue our close relationship with Sharp through this arrangement,” said James P. Clappin, president of Corning Display Technologies. “The timing is right, since LCD televisions of increasingly larger size are quickly becoming a product of choice for consumers worldwide.”

Previously, the company said it believes that LCD television penetration will reach 36 percent of the global TV market this year, rising to 47 percent in 2008. Over the past two years, the 40-inch-and-above LCD TV market has been a primary driver of growth for LCD glass demand. That demand is expected to continue, in part driven by the emergence of 50-inch-and-larger LCD TVs, Corning said.

The company said it expects the overall LCD glass substrate market to reach 1.7 billion sq ft in 2007 and to grow again by at least 400 million sq ft in 2008.

For more information, visit: www.corning.com