Chinese display giant China Star Optoelectronics (CSOT) has further delayed the installation of equipment at its T5 factory, which is dedicated to the production of sixth-generation liquid crystal display (LCD) panels.
TCL Chairman Li Dongsheng personally visited South Korea this summer when he asked CSOT's South Korean display maker about recent delays.
The T5 factory plans to produce sixth-generation (1500x1850mm) low-temperature polysilicon (LTPS) thin-film transistor (TFT) LCD panels for high-end IT equipment and automobiles.
Huaxing Optoelectronics Co., Ltd. plans to build the factory in two phases, and each phase will increase the production capacity of 15,000 substrates per month. The company has placed orders for two phases, but the delivery and placement of equipment for the second phase have been continually delayed.
CSOT had also planned to add a MicroLED backplane production line with a monthly capacity of 15,000 substrates, but the plan has been postponed indefinitely.
South Korean kit makers ICD and Viatron have also been affected by delays. ICD said back in September that the deadline for its 17.7 billion won contract with CSOT had been pushed back.
Viatron said the deadline for its 14.6 billion won contract with a Chinese display panel maker has been pushed back to December next year from the end of November.
Other South Korean equipment makers are also in talks to push back the deadline further, the sources said.
CSOT is likely to delay equipment installation due to the downturn in the global LCD market.
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