Corning announced on May 24 that it will increase its display glass substrate prices by 20%, starting in the third quarter of 2023. The company said the price rise will offset the growing costs during the extended inflation.
According to an announcement, Corning's global price increase of display glass substrate will apply to all regions, compositions and glass gen sizes. It said the price adjustment is intended to offset rising costs in energy, raw materials and other non-Japanese-Yen-denominated operational expenses.
The company said demand for display glass is expected to grow in the second half of 2023, thanks to the ongoing display industry recovery and typical seasonal demand patterns.
The last time Corning increased display glass substrate prices was in 2021, according to its press releases. The company raised the price moderately twice two years ago without revealing the exact increase.
At that time, Corning said the price adjustments resulted from increased costs in logistics, energy, raw materials and other operational expenses during the glass shortage period.
Corning's markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductors and life sciences.
According to its financial results for the first quarter of this year, Corning reported US$3.2 billion in sales, a 7% decline from the previous quarter. The gross margin was 35.2% and the operating margin was 15.5%.
Due to the slight volume and glass price decrease, the company saw a 3% sales decline in display business from the fourth quarter of 2022.
It added that display volume increased significantly in March as conditions in China improved and panel maker utilization resumed.
Wendell Weeks, Corning's chairman and CEO, said the company's financial results are expected to improve in the second quarter of 2023 while conditions remain weak in multiple markets.
