Corning Announces Plan for Expansion of New LCD Glass Manufacturing Facility Currently Under Construction in Taichung, Taiwan.CORNING, N.Y. -- Board of Directors Approves Funding for Second Phase of Facility Plans Corning Incorporated Corning Incorporated NYSE: GLW is an American manufacturer of glass, ceramics and related materials, primarily for industrial and scientific applications. The company was known until 1989 as Corning Glass Works. (NYSE NYSE See: New York Stock Exchange :GLW GLW Glasgow Airport (UK) GLW Gross Laden Weight GLW Good Lady Wife (Australia) ) announced today that its board of directors has approved an additional capital expenditure plan of $326 million for expansion of the new liquid crystal display liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. (LCD) glass substrate The base layer of a structure such as a chip, multichip module (MCM), printed circuit board or disk platter. Silicon is the most widely used substrate for chips. Fiberglass (FR4) is mostly used for printed circuit boards, and ceramic is used for MCMs. manufacturing facility currently under construction in the Central Taiwan Science Park, Taichung, Taiwan. This investment will be used to fund the second phase of the Taichung facility. The investment for the first phase of Taichung was approved in July of this year. This new, second phase of the Taichung facility will add significantly to the plant's large-size glass substrate capacity. Initial manufacturing from this second phase is projected to begin in the fourth quarter of 2005, with production continuing to come online through 2006. The Taichung facility will ultimately manufacture Generation 5.5, Generation 6 and larger glass substrates, suited to meet the anticipated demand for desktop monitors and the emerging LCD television market. "We are continuing to quickly develop the Taichung facility in order to keep pace with the projected demand of the LCD industry, particularly in Taiwan. As an industry leader, Corning is focused on being prepared to provide customers with a reliable supply of the highest-quality glass substrates," said Donald B. McNaughton, senior vice president, Display. "However, we will phase the timing of production lines within the Taichung facility in accordance with customer supply agreements." Today's announcement represents Corning's fourth major LCD capital expansion in the past 18 months. Previous announcements include: --July 2004: $750 million, primarily for the new LCD manufacturing facility in Taichung, Taiwan --February 2004: $600 million for the expansions of the Tainan, Taiwan and Shizuoka, Japan LCD glass manufacturing facilities --July 2003: $180 million for the expansion of the Tainan, Taiwan facility Previously, Corning announced that it had increased its estimate of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. for 2004 to $950 million to $1 billion. This year's portion of today's $326 million announcement is included in that capital spending plan. As previously forecast, Corning expects LCD glass market volume to grow between 40 and 60 percent annually through 2006, although growth could be less in any given quarter and the pace of growth may be subject to a number of factors, including retail pricing and the level of inventory at various points within the supply chain. This market growth is expected to be driven by the increasing demand for notebook computers A laptop computer that weighs in a range from five to seven pounds. The term originated when laptops were routinely more than 10 pounds, and those that became lighter were placed in a special "notebook" category. In practice, notebook computer and laptop computer are synonymous. , LCD monitors A flat panel display that uses liquid crystals. Although laptops have used LCDs as their flat panel technology almost exclusively, LCD is also the most popular for flat panel desktop monitors. Toward the end of 2003, sales of LCD displays for desktops overtook CRTs for the first time. , LCD televisions and smaller LCD applications. The expansion of the Tainan facility and the development of the Taichung facility create extensive job opportunities in Taiwan for talented engineers and direct labor employees. About Corning Incorporated Corning Incorporated (www.corning.com) is a diversified technology company that concentrates its efforts on high-impact growth opportunities. Corning combines its expertise in specialty glass, ceramic materials, polymers and the manipulation of the properties of light, with strong process and manufacturing capabilities to develop, engineer and commercialize significant innovative products for the telecommunications, flat panel display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time , environmental, semiconductor, and life sciences industries. Forward-Looking and Cautionary Statements This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes or fluctuations in global economic and political conditions; tariffs, import duties and currency fluctuations; product demand and industry capacity; competitive products and pricing; manufacturing efficiencies; cost reductions; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; capital spending by larger customers in the liquid crystal display industry and other businesses; changes in the mix of sales between premium and non-premium products; facility expansions and new plant start-up costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability or major health concerns; ability to obtain financing and capital on commercially reasonable terms; adequacy and availability of insurance; capital resource and cash flow activities; capital spending; equity company activities; interest costs; acquisition and divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). activities; the level of excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. ; the rate of technology change; the ability to enforce patents; product and components performance issues; changes in key personnel; stock price fluctuations; and adverse litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or regulatory developments. These and other risk factors are identified in Corning's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events. |
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