Nippon Electric Glass (NEG) and Asahi Glass Glass Substrate Plant have successively experienced accidents. Among them, the supply gap of Nippon Electric Glass is supported by Corning’s glass substrate production capacity in South Korea through scheduling. Now Asahi Glass has another accident. There is almost no spare capacity to fill the gap in inventory and production capacity. It is expected that the gap in the supply of glass substrates in the second and third quarters will further expand.
An explosion occurred at the Asahi Glass Gumi Plant in South Korea at the end of January. The furnace body and the glass substrate furnace were ruptured due to shocks during the explosion. It is estimated that the repair time may be more than half a year, and the supply of glass substrates was impacted. Xie Qinyi said that NEG and Asahi Glass’s glass substrate plants have successively experienced accidents. Among them, the supply gap of NEG glass is supported by Corning through scheduling the glass substrate production capacity in South Korea. Now Asahi Glass has another accident. The inventory and production capacity of glass substrate factories have little spare capacity to fill the gap. It is expected that the supply gap of glass substrates in the second and third quarters will further expand.
Omdia previously estimated that the global glass substrate supply-demand ratios for each quarter this year were -2.0%, 1.8%, 3.0%, and 6.5%, but after the Asahi Glass accident, the supply-demand ratio was adjusted to -1.9%, 0.6%, 0.2%, 4.1%. The tight supply situation will not have a chance to ease until the fourth quarter of this year.
The industry pointed out that Asahi Glass’s main customers include China Star Optoelectronics, AUO, Innolux, Huike and other panel makers. Among them, Asahi Glass and China Star Optoelectronics have a deep strategic cooperation relationship. Asahi Glass’s 10.5 generation factory is exclusively supplied by Asahi Glass. The accidental furnace is to be refitted, and it is prepared to change the production of 8.5-generation glass to 10.5-generation glass, and supply the 10.5-generation plant that will be put into operation in the third quarter of CSOT. Due to the damage to the furnace body this time, the repair time is lengthened. Asahi Glass will give priority to China Star Optoelectronics, reducing the supply of other customers.
It is understood that AUO, Innolux, and Huike have received a notice from Asahi Glass last Friday that they will reduce the supply of glass substrates from March. AUO and Innolux’s 6-generation glass substrate supply will be reduced by 30%, while Huike The 8.6-generation plants in Chongqing and Chuzhou will also reduce the supply of glass substrates by 30%. Huike’s main glass substrate suppliers are Asahi Glass and Nippon Electric Glass. Accidents occurred in the two factories one after another, and Huike is afraid of falling into a crisis of supply.
