Corning raised the price of substrate, and the LCD

Corning pointed out that the price adjustment of glass substrate is mainly affected by the shortage of glass substrate, the increase of logistics, energy, raw material prices and other operating expenditure costs. In addition, the cost of precious metals required to maintain reliable glass substrate manufacturing has increased significantly since 2020. Although Corning tried to offset these increased costs by increasing productivity, it was unable to fully offset these costs.

Corning expects that the supply of glass substrates will remain tight in the next few quarters, but Corning will continue to cooperate with customers to improve the supply capacity of glass substrates as much as possible.

Lin Zhi, chief analyst of wit display, pointed out that Corning mainly produces 8.5 generation glass substrates and 10.5 generation glass substrates, mainly supporting panel manufacturers such as BOE, rainbow optoelectronics and Huike. Therefore, Corning's increase in the price of glass substrates will affect the price of BOE, rainbow optoelectronics and Huike TV panels and promote the further price rise of TV.

In fact, the price of glass substrate has been rising for a long time. According to jiwei.com, recently, the glass substrate industry is in an eventful period. Corning, neg and AGC, the three major glass substrate manufacturers, have encountered failures, power outages, explosions and other accidents one after another, bringing more uncertainty to the LCD panel industry with disordered supply and demand.

At the beginning of 2020, the epidemic spread all over the world, and the LCD panel industry fell into a trough. Industry research institutions have reduced the expectation of the LCD panel market. Corning also postponed the plan of ignition of 10.5 generation glass substrate production lines in Wuhan and Guangzhou. When the LCD panel market improved in the second half of last year, BOE Wuhan generation 10.5 line and super vision Guangzhou generation 10.5 line were limited in the speed of capacity expansion due to the lack of sufficient glass substrates.

One wave is not even, another wave rises again. In September 2020, the price of LCD panel continued to rise, and the panel factory planned to further increase the amount of glass substrate. However, at this time, the furnace of Corning Hefei generation 10.5 glass substrate production line broke down again, affecting the production of BOE Hefei generation 10.5 line.

Corning furnace failure has not been repaired, and glass substrate factory accidents have occurred one after another. On December 11, 2020, a temporary power failure occurred in neg Japan's glass substrate factory, resulting in the damage of the feeder and shutdown. The supply of glass substrates of LGD, BOE, Youda, CLP panda and Huike was affected to varying degrees. On January 29, 2021, a furnace explosion occurred in AGC South Korea Guiwei glass substrate factory, which injured nine workers and delayed the plan to stop the furnace and change the line.