[The Korea Industry Post, 2016.5.18]

Chinese display panel maker CSOT, also called as China Star Optoelectronics Technology, is speeding up its move to establish a 11th generation of LCD fabrication facility in Shenzhen city of China.

The move is part of Chinese display makers effort to take the leadership in over 60-inch large LCD display panel, eyeing 4K and 32.2 million pixel-heavy luxury TV market.

CSOT announced that it will invest approximately $7.7billion this year to construct the 11th generation of LCD facility, as this 3000mm x 3320mm glass substrate production line is called.

The new LCD production line will likely surpass BOE’s $6.6billion 10.5th generation LCD facility of which is on construction.

11th generation of LCD will guarantee Chinese display maker economy of scale, as the 3000mm x 3320mm glass substrate is optimized to fabricate over 60-inch large displays. Economy of scale will promise ample room for cuts in production cost and price drop.

In neighboring country Korea, LCD equipment makers are expecting to gain great benefit from CSOT’s multi-billion dollar investment.

Two big Chinese display makers’ new production lines will start to fully work from 2018, which will likely put a drag on Korean display panel makers’ sales.

A person familiar with the matter said “Unlike government subsidy invested Chinese players, Korean display makers cannot afford to establish large-size LCD facility,” adding “Korean display makers should rather turn to OLED TVs to compete with Chinese display panel makers.”

by Brian Ahn

ahngija@kipost.net

translated by Taegeun Kim

ktg1130@kipost.net