Joint venture starts on TFT-LCD glass substrates: News from Schott

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Kuramoto and Schott have officially opened their new joint venture for the processing of large format TFT-LCD glass substrates in Korea. Schott will supply the joint venture with large-format glass substrates of Generation 5 and upwards, whereas Kuramoto will contribute its TFT-LCD glass substrate processing knowhow to the venture. 'With the processing capability fully installed, the volume supply of Generation 7 TFT glass substrates can now begin', said Dr-Ing Karl-Peter Merz, Member of the Board of Management of Schott.

The demand for TFT-LCD glass substrates is growing as manufacturers seek to produce more flat panel displays for computer monitors, notebooks and, especially, flat-screen TVs.

In 2006 the global market for flat-screen televisions that use TFT-LCD glass substrates doubled in volume for the second year in a row, to more than 40 million televisions.

Demand for flat-screen TVs is expected to grow at an average annual rate of between 20 and 30% through 2010.

The growth of the flat-screen TV market is increasing demand for Generation 7 and higher format TFT-LCD glass substrates.

Generation 7 and higher glass substrates are larger than earlier substrate generations allowing flat panel TV manufacturers to produce more TFT-LCD panels in one production step and thereby bring down manufacturing costs.

In addition to its new joint venture TFT-LCD processing plant in Korea, Schott is making other investments that will enable it to produce more alkali-free thin glass substrates.

For example, in November 2006 Schott fired-up a new US $75 million (Eur 60 million) melting tank in Jena, Germany, which more than doubled its melting capacity for 0.7mm thick TFT-LCD glass substrates.

Schott ships raw glass substrates from its melting tanks in Germany to Korea, where they are cut, beveled, edge-polished, polished and ultrasonically cleaned before undergoing final inspection and packing at the Korean processing plant's class 1000 clean room.

The Schott Kuramoto Processing Korea Co processing plant is located approximately 100km south of Seoul in the Chungcheongbuk-do Ochang Science Park.

The plant is located near the global market leaders in flat-screen television production, Samsung Electronics and LG Philips LCD.

The processing lines for Generation 5 and Generation 7 substrate are currently being ramped-up and are expected to be running at full capacity by August 2007.

Kuramoto, based in Japan's Miyagi prefecture, owns 25% of the shares of the Schott Kuramoto Processing Korea Co, and Schott holds remaining 75% of shares.

The joint venture has created 400 highly skilled jobs.

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