The availability of new LCD and OLED fabs and capacity ramps at existing lines are likely to result in an annual growth about 12% in large-size panels sector in 2019, according to industry sources.
A total of four fabs dedicated to producing large-size panels will come into full capacity in 2019, with an 11G line of China Star Optoelectronics Technology (CSOT) being the first entering volume production in the 1.Q of the year.
The second will be a new 8.6G line built by Chongqing HKC Optoelectronics in Chuzhou, eastern China. The Chuzhou plant, HKC’s second 8.6G fab, is scheduled to start volume production in the 2.Q of 2019 with a capacity of 150,000 substrates per month.
The new 8.6G a-Si LCD line, which requires a total investment of CNY24 billion (US$3.577 billion), will utilize 2,250 by 2,600mm glass substrates to make flat panels mostly in 32-, 43-, 50- and 58-inch sizes.
The aggregate annual production value of the 8.6G line will amount to CNY22 billion when it operates at full capacity.
An 8.5G OLED line of LG Display in Guangzhou is also scheduled to start operation in the 2.Q. And the fourth fab is a 10.5G line owned by Sakai SIO International Guangzhou, an affiliate of the Foxconn Group, that is scheduled to begin commercial production in October 2019, the sources indicated.
In addition to the new fabs, BOE Technology is ramping up output from its 10.5G line in Hefei, while the Irico Group is expanding the production capacity of its 8.6G line in Xianyang.
However, plans by Samsung Display to shift one of its 8.5G LCD lines for the development of QD-OLED panels starting at 2.Q of 2019 could help ease the impacts of oversupply of the industry.