China Star Optoelectronics (CSOT) has started production at its T2 8.5G facility in Shenkeng, China, producing large size, high-end TV panels. The new fab is expected to generate annual sales of CNY20 billion ($3.2 billion). CSOT is also planning to expand production at its T1 and T3 facilities. T1 produces small to medium sized TV panels, while T3 is aimed at high-end small to medium panels.
CSOT’s chairman, Li Dongsheng, said that he expects China to surpass Taiwan in panel shipments this year and Korean manufacturers two years later. By the end of this year, there will be eight 8.5G fabs in China (two of which belong to Korean manufacturers LG Display and Samsung Display), while the remaining six are local manufacturers. BOE is also working on new 10.5G and 8.5G fabs which are scheduled to start operating in the next few years, which Li believes will position China in the leading spot in global panel production in two to three years time.
