14 DAY TRIAL // AKT expects the LCD equipment market will remain flat in 2007. The PEVCD (plasma enhanced chemical vapor deposition) tool supplier is continuing to develop next-generation equipment, with the company's 50K series already meeting requirements for eighth-generation (8G) glass substrate production. In spite of that, AKT expects the market to remain flat next year due to industry players becoming more aware of the relationship between capital expenditure and capacity, following this year's inventory correction, said company sales and marketing director Yutaka Tanaka, quoted by Digitimes.
All leading panel makers including AU Optronics (AUO), Chi Mei Optoelectronics (CMO), LG. Philips, Samsung Electronics and Sharp are customers of AKT, but only Sharp has entered into 8G production. So, although AKT's 50K-series equipment can already fulfill 8G glass substrate production, the company is not yet seeing a meaningful revenue contribution from this sector, added Tanaka.
It seems a larger glass substrate size is not the only criteria LCD makers have for increasing their profitability. He cited CMO as an example, saying the company has chosen to construct a 6G plant rather than a 6.5G plant as a 6G plant would produce more economic panel cuts and help maximize profits.
"With Gen 7 display fabs focused on manufacturing large flat-screen TVs having the most advanced test technology is critical to reducing costs, increasing yields and eliminating defects from shipped products", said Wendell Blonigan, president of AKT.
In related news, Tanaka said that AKT and Applied Film have potential to partner up in the future, as the two Applied Materials subsidiaries share a similar technological foundation.