As I consider the industry events of the past year, from the global economic downturn to the supply chain contraction to the subsequent upsurge in demand, I’m encouraged by the strength of the LCD market in the face of a weak economy. This is particularly true in China, where the government is subsidizing LCD over the incumbent technology, CRT. A similar incentive program exists in Japan, encouraging Japanese consumers to replace their CRT televisions with energy-efficient LCDs. Meanwhile, U.S. market strength has been bolstered by the digital transition, initially scheduled for February but implemented in June. Falling prices have also helped spur demand in 2009.
On the technology front, we continue to be excited about Jade™ glass for advanced display, our product for the small mobile device market. We are currently working with our customers on the features and attributes of the next generation of the glass. As the market considers how to solve the technical issues associated with OLED TV, Corning will be there to support this new application.
We also have continued interest in developing thinner substrates. Corning’s fusion process is uniquely suited to creating thin glass, and while handling such a fragile material is always a concern, we have successfully created thicknesses of just 0.4 mm.
We are also studying the role of glass in the future of reflective displays, since e-Paper can benefit from the properties of glass as opposed to plastic or other materials.
Large-size is another area of development. Corning is currently the only maker of TFT- grade Gen 10 substrates, and we are supporting Sharp in the early stages of their ramp at their facility in Sakai City, Japan. In size and scope, Sakai City is a one-of-a-kind facility, with key component suppliers operating on site. For Corning, this close proximity to the customer will be very helpful in defining requirements for the glass, and in linking glass manufacturing with panel and set manufacturing. It also allows us to test hypotheses and rapidly respond to any issues or learnings. At the end of the day, Gen 10 will be the largest, cleanest, least-handled glass substrates entering a TFT process.
Throughout all of our regions, we appreciate our customers’ patience as we work through the after-effects of the significant market disruption which affected glass supply to a large degree. We also appreciate their messages of support in the aftermath of the earthquake that damaged our facility in Shizuoka, Japan. Recovery efforts are well underway and we continue to ship glass with the assistance of other plants in our global supply network.
As we approach 2010, we pause one last time to celebrate our 25 years of leadership in active matrix LCD, and look forward to the next quarter-century of innovation.