Glass substrates shortage will remain in fourth-quarter 2021 but is expected to ease off in first-quarter 2022, according to industry sources.
Japan-based maker AGC's factory in South Korea had to stop production of glass substrates in early 2021 after an explosion, the sources said. The factory is still being repaired and will completely resume production at year-end 2021 or in early 2022, the sources noted.
Japan-based fellow maker Nippon Electric Glass stopped production due to damaged equipment arising from sudden power outage in December 2020, and resumed production in second-quarter 2021, the sources indicated.
These accidents have led to short supply of glass substrates so far in 2021, the sources said.
To ease the shortage, Corning has postponed tank maintenance originally scheduled for first-half 2021 until the fourth quarter, with the maintenance to end at the end of 2021 or in early 2022, said the sources.
Consequently, glass substrate shortage will ease in first-quarter 2022, the sources said.
The shortage is expected to reduce LCD panel production in second-half 2021, with output estimated to drop by an equivalent to total monthly input of 120,000 glass substrates at 8.5G lines, according to Innolux president James Yang.
Because of glass substrate shortage, and large drops in TV-use LCD panel prices, Innolux is decreasing production via scheduling maintenance beginning September 2021. LG Display will reduce production at its 7.5G and 8.5G lines, and China Star Optoelectronics Technology (CSOT) will do so at its 10.5G line by using 20,000 fewer glass substrates a month beginning October 2021, the sources noted.
Article translated by Adam Hwang
