LG orders G10 Lithography tool
We believe LG Display has ordered a Gen 10+ lithography tool for the new OLED display fab it is constructing in Paju. We believe the tool is a Nikon (7731.JP) FX-101S series model that will be adapted to the larger size. The current Nikon Gen 10 lith tool supports substrate size of 2880x3130mm (~9m2) while we believe the LG line will run 3300x3340mm (~11m2). The smaller tool has a TAC time of 70 seconds per sheet, which would be a bit higher for the larger substrate, which comes to ~360 60” TV panels/hour or 263k/month (3.15m/year).
Of course these estimates are for 60” TVs at 100% yield, and will be discounted, especially as the plant ramps production, but it gives investors the understanding of the capabilities and capacity of these tools. That said, the typical lead time for backplane lith tools is between 14 and 18 months, although the size modified units might take a bit longer. If LG placed the order in February, the expected delivery date would be between April and August 2018. Our timeline for this fab has been phase 1 of the project scheduled for June 2018 which is a bit optimistic relative to the tools construction time, but still within reasonable parameters. While Nikon is hard-pressed to meet its delivery schedules as it is, the fact that this will likely be the largest lith tool ever built (and likely the most expensive) in the display space, they might have the incentive to speed up the process. Perhaps LGD has also given them some financial incentives to bring the tool in more quickly?
Of course these estimates are for 60” TVs at 100% yield, and will be discounted, especially as the plant ramps production, but it gives investors the understanding of the capabilities and capacity of these tools. That said, the typical lead time for backplane lith tools is between 14 and 18 months, although the size modified units might take a bit longer. If LG placed the order in February, the expected delivery date would be between April and August 2018. Our timeline for this fab has been phase 1 of the project scheduled for June 2018 which is a bit optimistic relative to the tools construction time, but still within reasonable parameters. While Nikon is hard-pressed to meet its delivery schedules as it is, the fact that this will likely be the largest lith tool ever built (and likely the most expensive) in the display space, they might have the incentive to speed up the process. Perhaps LGD has also given them some financial incentives to bring the tool in more quickly?
Nikon FX101S Lith tool - Source: Nikon
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