The market demand continues to be strong, and the production capacity of glass substrates is tighter this year.
Flores, vice chairman and chief financial officer of American Corning company, the world's largest glass substrate supplier, said that driven by the business opportunities of the Chinese Olympic Games, the panel Market will be great in 2008, but the production capacity of glass substrates may be reduced, making the regional differences between the supply and demand of glass substrates more obvious and even the distribution of types tighter in 2008. The new capacity of the panel factory is limited next year, and the market demand continues to increase. The market research organization believes that the panel supply will be in short supply next year. At the same time, the glass substrate supply will also be insufficient, and the supply and demand situation of the panel market will be more tight next year
Flores pointed out that the panel factory, Corning and the entire panel supply system successfully adjusted their production capacity in response to market demand last year to reduce the impact of seasonal changes in the market, and their profitability did improve significantly. Driven by the Chinese Olympic Games, the whole market demand is expected to continue to grow next year
Corning company observes the situation of the terminal market and believes that the supply of glass substrates next year will be tighter than this year. In terms of the demand for glass substrates, it was 800million square feet in 2005, 1.2 billion square feet in 2006, 1.6 billion square feet this year, and is expected to reach 2billion square feet next year, with an annual growth of 400million square feet. The panel industry will be very good next year, but the glass substrate production capacity may be reduced next year. With the continuous growth of the market, the supply of glass substrates may be tight, even more than this year
Flores said that the glass price decreased by about 16% in 2006, which was even more significant last year. Corning continued to reduce prices, and customers also maintained profits because of the price reduction. Last year's decline was indeed slightly higher than the average value. Because this industry was originally unusual, it is difficult to say whether the decline level can return to normal this year. The LCD terminal market, including small size, it and TV, is still very strong. In terms of the production capacity of the whole industry, the overall supply of panel manufacturers and glass substrate manufacturers is no longer excessive, and the market demand continues to be strong
under the demand of sharp, Samsung and LPL, the pull rod (6) in the hollow spindle of Samsung Corning has increased, and the third plant will be expanded. With the advent of the era of large size, the expansion cost is getting higher and higher, and manufacturers will be less willing to invest. Hao Xiangjun said that Corning hopes that the terminal market will continue to grow, and customers will also be willing to continue to invest. Corning will invest jointly with Samsung in South Korea, while Corning will invest by itself in other regions