On 29th.,March, Corning announced a modest increase in the price of glass substrates used in its displays in the second quarter of 2021.
Corning pointed out that the glass substrate price adjustment is mainly affected by the shortage of glass substrate, logistics, energy, raw material prices and other operating expenses increased costs. In addition, the cost of the precious metals needed to maintain reliable glass substrate manufacturing has risen sharply since 2020. Although Corning has tried to offset these increased costs by increasing productivity, it has not been able to fully offset these costs.
Corning expects the supply of glass substrates to remain tight over the next few quarters, but will continue to work with customers to maximize the supply of glass substrates.
Lin Zhi, chief analyst of Wit Display, pointed out that Corning mainly produces 8.5 generation glass substrate and 10.5 generation glass substrate, which are mainly supporting panel manufacturers such as BOE, Rainbow Optoelectronics and Huike. Therefore, Corning’s increase in the price of glass substrate will affect the price of BOE, Rainbow Optoelectronics and Huike TV panel, and promote the further price increase of TV.
Actually, there has been the trend that glass substrate price rises. According to Jimicr.com reports, recently, the glass substrate industry is in a trouble, that three glass substrate manufacturers Corning, NEG, AGC continue to encounter failures, power outages, explosions and other accidents, which brings more uncertainty to the original supply and demand disorder of the LCD panel industry.
At the beginning of 2020, the epidemic spread around the world, the LCD panel industry fell into a trough. So the industry research institutions have reduced the LCD panel market expectations. And Corning also postponed the furnace plan of the Wuhan and Guangzhou 10.5 generation glass substrate production line. When the LCD screen market improved in the second half of last year, BOE Wuhan 10.5 Generation Line and Guangzhou Super Sakai 10.5 Generation Line were limited in their capacity expansion due to a lack of sufficient glass substrates.
Corning furnace failure has not been repaired, the glass substrate plant accident happened one after another. On December 11, 2020, a temporary power failure occurred in NEG Japan Glass Base Factory, resulting in the damage of feeder tank and the work stoppage. And LGD, BOE, AUO, CLP Panda and Huike glass substrate supply are affected by varying degrees. On January 29, 2021, a furnace explosion occurred at AGC’s Kamei Glass Base Plant in South Korea, injuring nine workers and postponing the shutdown of the furnace and rerouting plan.
All these made the LCD panels continue to rise and may be going up at within one year.
Post time: Apr-24-2021