Hong Kong based HKC held a ceremony for its second Gen 8.6 LCD fab in Chuzhou, China. The USD 3.62 billion Fab while projected to have a final capacity of 120,000 sheets/mo. is based on a-Si LCD technology, would start with a single 30,000-sheets/month phase, and is projected to begin production in the 1st quarter of 2019. In March, HKC had completed construction and lit its new Gen 8.6 LCD fab in Chongqing and had set a timeline for a production ramp that would reach a 90 percent utilization rate in July and 100 percent in October. Recent reports indication that the first fab is facing low yields. The company now says that it has rolled out one million total units between March and July, and by extrapolating from 1,000,000 substrates, accumulated units the math comes to 10,893 sheets/month or a 36.3 percent average on a 30,000 sheet line, significantly below what would be considered acceptable yield, despite the company’s expectations that it will be able to supply 23.6-inch, 32-inch, 43-inch, and 55-inch panels by the end of this year. HKC is optimistic with the groundbreaking for the second fab, as the first fab would not be completely built out until 2H 2019. – OLED Association