What They Say
The Elec reports that an expectation that Xi Jinping will enjoy a third term of office in China is leading to more certainty in China and that this could mean that Tianma and CSOT will be able to resume plans for investment in new capacity and equipment.
The blog said that Tianma is likely to place orders for the second phase of its TM18 line as well as TM19 line within the year. CSOT is also expected to place orders for the second phase of its T9 line.
Tianma is planning to spend $6.8 billion for a maximum capacity of 48K substrates per month.
Meanwhile, TM19 is a Gen 8.6 LCD line with ]$5.2 billion earmarked for a capacity of 120K substrates per month. The line will manufacture panels for automobiles and IT products. Production is expected to start in late 2024.
CSOT’s T9 is also a Gen 8.6 LCD line located in Guangzhou. A total of $5.4 billion will be spent for a capacity of 180K substrates per month.
What We Think
Politics, as the saying goes, beats economics in decision making and this article seems to confirm that! (BR)
