JUSUNG Engineering will produce the first domestic 10.5 generation thin film transistor (TFT) vapor deposition CVD equipment. The first customer to be delivered to is LG Display’s 10.5-generation large OLED production line at the P10 plant in Paju, Gyeonggi-do. TFT deposition equipment of higher than 10-generation was dominated by Applied Materials (AMAT) of USA, the world's No. 1 display equipment maker.
According to the industry on the 7th, LG Display recently gave a purchase order (PO) for one piece of TFT deposition equipment for 10.5G large OLED lines to JUSUNG Engineering. LG Display sent a letter of purchase intent (LOI) at the beginning of last year. However, it took about one year from LOI to PO due to delayed investment. The equipment price is reported to be over 20 billion won. It is expected that equipment delivery will be made in the second half of this year at the earliest or early next year at the latest.
The TFT deposition equipment market for over 10G has been dominated by AMAT. AMAT has been supplying equipment to China BOE, CSOT, and others starting with the world's first 10G (2880x3130) LCD production line owned by Sharp (current SDP), which started mass production in 2009.
In 2015, BOE started construction of the world's first 10.5G (2940x3370) LCD production line (B9) in Hefei, Anhui Province, China, and started mass production last March. It is currently in the ramping-up phase. After reaching 90,000 sheets per month at the end of last year, it is said that the production capacity is being raised to 120,000 sheets, which is design production capacity. BOE hosted a ‘building skeleton structure completion’ ceremony last November at the second 10.5G LCD production line (B17) that is being built in Wuhan City, Hubei Province.
CSOT started production in November last year at the T6 plant in Shenzhen, Guangdong, which has 11G LCD production lines (same size as BOE 10.5 generation). The T6 plant plans to raise its production capacity to 90,000 sheets per month, the design production capacity, by the end of this year. At the same time as the announcement of the T6 production, CSOT began construction of the T7 factory, the second 11G production line, right next to the location.
SDP, acquired by Taiwan Foxconn, will begin mass production this October after starting to build a 10.5G LCD production line in Guangzhou in 2017 through Sakai SIO, a joint venture the Guangzhou Municipal Government of Guangdong Province, China.
In recent years, among the 10.5G LCD investments in China for 10.5G LCD, DMS and KC Tech was the first to jump at the opportunity among domestic equipment makers by supplying cleaning and stripping equipment. JUSUNG Engineering did not.
An official of JUSUNG Engineering said, "At that time, we were unable to respond as we were focused on the solar cell business." Out of JUSUNG Engineering’s sales of 264 billion won last year, semiconductor and display equipment sales accounted for 56.0% and 43.3%, respectively. Solar cell equipment merely accounts for less than 1%.
JUSUNG Engineering has gained experience in delivering TFT deposition equipment for the first 10G or higher for its long-time customer LG Display. An official of JUSUNG Engineering said, "There is no fundamental difference between LCD and large OLED in TFT deposition process. The input gas composition somewhat differs.”
The CVD equipment for the TFT deposition process deposits a chemical result of an injected vapor material on a glass substrate in the form of a thin film. After relevant processes such as etching are completed, a thin film transistor (TFT) is formed.
JUSUNG Engineering supplied TFT deposition equipment to 8.5G plant in Guangzhou where LG Display recently invested in the large OLED production line. JUSUNG Engineering supplied five, AMAT supplied four equipment units among the nine units of equipment of LG Display. Chul-Joo Hwang, President of JUSUNG Engineering, is also the president of the Best Club, a cooperative group of LG display equipment makers.