Corning has indicated that it will need to increase capital to keep pace with demand forecasts for glass through 2006. Specific amounts have not yet been determined.

 

Despite ever mounting panel capacity throughout the year, glass has been in short supply. In 2004 the company is thus already spending US$800 million on glass capacity expansions in both Japan and Taiwan. However, the company believes that such added capacity will only be enough to support a market where LCD TVs account for no more than 10% of the total TV market.

 

Corning has also introduced a program to have customers pay for glass years in advance. The program will help relieve the initial upfront financial burden of building new factories, and also avoid a repeat of the heavy losses suffered during the telecom bust, when customers refused optical fiber deliveries. Chi Mei has agreed to put forward US$204 million in 2004 and US$306 million in 2005 to secure a five-year glass supply.