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DisplayTechnologies

The LCD Revolution:From Taiwan to the World

Alan EusdenPresident, Corning Display TechnologiesTaiwanJune 11, 2008

2Display Technologies © Corning Incorporated 2008

Forward Looking And Cautionary Statements

Certain statements in this presentation constitute “forward looking

statements”within the meaning of the U.S. Private Securities

Litigation Reform Act of 1995. Such forward looking statements arebased on current expectations and involve certain risks and

uncertainties. Actual results might differ from those projected in the

forward looking statements. Additional information concerningfactors that could cause actual results to materially differ from those

in the forward looking statements is contained in the Securities and

Exchange Commission filings of the Company.




Corning’s expansions across Asia correlate withrise in global demand

'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09

LCD Glass Demand

LCD

Gla

ss

Corning entersTaiwan

Corning entersJapan

Corning entersKorea

Corning entersChina


2001 –Corning expands into Taiwan

• Corning becomes first LCDglass substrate supplier tolocate a manufacturingoperation in Taiwan

• Facility is located in Tainan


2004 –Tainan begins melting operations

• Corning expands capability ofTainan facility

• Plant begins melting operationsto keep pace with rapid growthof customers

• In 2005, the plant wasexpanded yet again


2006 –Corning builds facility in Taichung, Taiwan

• Corning opens second LCDmanufacturing facility in Taiwan,located in Taichung

• A milestone in Corning historydue to the scale of the facilityand speed of completion

• Contains over 100,000 metrictons of steel

• Over 20,000,000 hours of laborto construct


Committed to Taiwan

• Providing a reliable supply of high-quality glasssubstrates for panel makers

• Largest foreign manufacturing investor in Taiwan– Corning has invested billions in Taiwan– 2,000 employees –local hires

• CDTT employees are dedicated to CSR

• Recent honors:– Excellent Foreign Workers and Employers Recognition,

Bureau of Labor Affairs, Taichung City Government– Gold Panel Awards - Outstanding Industry Contribution Award, IDB


Corning entersJapan

Corning entersKorea

Corning glass innovations meet industry needs

'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09

LCD Glass Demand

Corning7059

Corning1737

Corning1737G

EAGLE2000®

Corning entersTaiwan

LCD

Gla

ss

Corning entersChina



2006 –Corning launches industry’s firstenvironmentally friendly glass

• EAGLE XG™ is the mostenvironmentally friendly LCDglass on market, with no addedheavy metals or halides

Same Advanced Benefitsas EAGLE2000®

EnvironmentallyFriendly Composition

+


EAGLE XG™ helps customers manage their totalproduct life cycle

Product Concept and Design

Future-proof:No use of heavy metals or

any other regulated materials

End-of-Life

Completely non-hazardouscomposition ensures ease of

recycling

Manufacturing and Operations

High quality performance, noglass-related effluent or

disposal concerns

Consumer OwnershipExperience

Decreased environmentalimpact

ProductLife Cycle


2007 –EAGLE XG™ wins two major industry awards

• Corning receives major industryawards for EAGLE XGsubstrates:– Grand Prize in 2007

Advanced Display of theYear Award presented atFINETECH Japan

– 2007 Display Component ofthe Year Award from SID

• Awards demonstrate industry’srecognition of Corning’soutstanding technicalachievement



Market need: larger Gen sizes to supportlarge-size LCD TV

Year

InDevelopment

20062005

2004

2003

2002

20001995

1993

LCD TV

Gen 8

Gen 7

Gen 6

Gen 7.5

Gen 10

Gen 5

Gen 4Gen 3

Gen 2 InformationTechnology


Gen 8 is the largest size currently available

Gen 8 panelization

90%2426”

95%846”

97%1832”

94%3223”

90%652”

EfficiencyPanel #

Illustration showing Gen 8 substrate with six 52-inch panels


Gen 10 will support a wide range of panel sizesGen 10 panelization

84%1837”

86%857”

89%1542”

84%2432”

84%665”

EfficiencyPanel #

Illustration showing Gen 10 substrate with eight 57-inch panels



Global Glass Demand

Source: Corning

CAGR(’07-’09)

Mill

ion

sq.ft

.

Outlook for global glass demand

•25-30% in 2008–>450 M sq.ft.

•25% CAGR (’07-’09)

25%

0

700

1400

2100

2800

2007 2008 2009


0.7à 1B units

83à 110M units

•Mobile phones

•GPS & autodisplays

100à 150Glass demand(million sq.ft.)

16%Unit growth ofsmall applicationswith LCD displays

Current View(’07à ’09)

Small Size

Small

Global Glass Demand CAGR(’07-’09)

Continued growth in small displays (<10”)

22%

25%

Source: Corning

Mill

ion

sq.ft

.

0

700

1400

2100

2800

2007 2008 2009


Nearly half of total PC sales will be notebooks

107à 156Units (M)

14.8”à 14.9”Avg. screen size

43%à 51%Notebook % ofPCs


11%Underlying annualPC unit growth


Notebook

Small


Notebook22%

19%

25%

Source: Corning

Mill

ion

sq.ft

.

0

700

1400

2100

2800

2007 2008 2009


Taiwan accounts for about 1/3 of global notebookpanel sales

Taiwan

Japan

Korea

China

Worldwide market share - NB panels

Source: Displaysearch, unit share

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108

Mar

ket S

hare


LCD monitor growth slowing

161à 187Units (M)


4%Underlying annualmonitor growth


88%à 95%LCD penetration


DesktopMonitor

Small


Notebook

Monitor

22%

19%

8%

25%

Source: Corning

Mill

ion

sq.ft

.

0

700

1400

2100

2800

2007 2008 2009


Taiwan is the leading producer of desktop monitors


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108

Mar

ket S

hare

Taiwan

China

Korea

Worldwide market share - monitor panels

Japan


79à 132Units (M)

38%à 60%LCD penetration

4%Underlying annualTV unit growth(all technologies)

840à 1,450Glass demand(million sq.ft.)



LCD TV

LCD TV penetration is key driver for glass growth


22%

19%

8%

33%

25%

SmallNotebook

Monitor

TV

Source: Corning

Mill

ion

sq.ft

.

0

700

1400

2100

2800

2007 2008 2009


Taiwan is also the leading producer of LCD TV panels


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108

Mar

ket S

hare

Taiwan

Korea

Worldwide market share - LCD TV panels

China

Japan


CAGR('07-'09)

LCD glass market growth strongest in large Gensizes

Gen 8+

Gen 6 & 7

Gen 5

158%

23%

3%

25% •Gen 8+ growing fastest– '09 demand is 5x '07

•Supports growth in largesize TVs

Source: Corning

Mill

ion

sq.ft

.

0

700

1400

2100

2800

2007 2008 2009

Global Glass Demand


Taiwan represents over 1/3 of global LCDglass demand

0

500

1000

1500

2000

2500

3000

2007 2008 2009

Global Glass Demand

Source: Corning

Taiwan 39%

Japan 14%

Korea 45%

China 2%

% of GlassDemand in 2008


Potential impact of an economic slowdown

•We are not forecasting a slowdown in the economy–Our presentation today assumes “business as usual”

•We have not seen any signs of a slowdown in our business

•However, we are not ignoring the possibility of a recession

•Our strong balance sheet and our focus on low cost will helpus weather a potential storm


Recent U.S. recessions have had little or no impact toWW TV sales; older data is conflicting

EnergyCrisis I(’73-’75)

EnergyCrisis II(’81-’82)

Junk Bond/StockCrisis (’90-’91)

Gulf War

DotcomBubble

Burst (’01)

PostVietnam

War(’69-’70) 1973: 23%

1974: -5%1975: -20%1969: 17%

1970: 24%

1990: 2%1991: 1%

1981: 15%1982: -2%

2001: 3%

Today vs. 1970• Only 30M TVs vs. 200M today• Few in developing countries• 1970s TVs = >10% of discretionary income; today <5%

U.S. Recessions vs. Worldwide Color TV Sales (all technologies) TV sales CAGR: 4%

0

50

100

150

200

250

1965 1970 1975 1980 1985 1990 1995 2000 2005

M U

nits

Source: CI Internal / Industry ExchangeNote: Official recession periods by National Bureau of Economy Research, with an exception of Asia Economy Crisis


Potential impact of an economic slowdown• We are forecasting LCD TV sales in the U.S. to grow from 23 million

in 2007 to 29 million in 2008•An increase of 6 million units

• The average LCD TV has 11 square feet of glass

• For example, if LCD TV sales are flat in the U.S., it would equal 66million square feet in “lost glass demand”

•Total glass market estimate for 2008: 2.2 billion square feet


Looking ahead

• Corning has played a pivotalrole in the industry’s progressby delivering numerousinnovations

• Corning will continue to providea reliable supply of high-technology glass whileworking to create next-generation platforms

• We are helping the industrybecome more environmentallyfriendly via EAGLE XG™


Documents

Display Technologies The LCD Revolution: From Taiwan to ...media.corning.com/flash/displaytechnologies/2008... · Display Technologies The LCD Revolution: From Taiwan to the World