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This is the Glass AgeHow glass is shaping the future of the display industry

John Zhang

Corporate Vice President and General Manager

Corning Display Technologies

May 22, 2017

Display Technologies 2.

© 2017 Corning Incorporated ..

GLASS ENVELOPEHEAT-RESISTANT

PYREX® GLASS

PROCESSES FOR MASS PRODUCING

THE TV BULBFIRST LOW-LOSS OPTICAL FIBER

CERAMIC SUBSTRATES FOR AUTOMOTIVE

CATALYTIC CONVERTERS

ACTIVE MATRIX LIQUID CRYSTAL DISPLAY (LCD)

GLASSCORNING® GORILLA®

GLASS

1879 1915 1947 1970 1972 1982 2007

EDISON’S LIGHT BULB

MODERN COOKING TV INTERNET MODERN AUTOINDUSTRY

FLATSCREEN TVS SMARTPHONE

Corning has a 165+ year history of delivering life-changing innovations…

1879 1947 1970 19821915 1972 2007



…including our role in advancement of the flat panel display industry

Fusion overflowprocess

Environmentally conscious

LCD glass –Corning EAGLE®

XG

Active matrix liquid crystal display (LCD) glass

Thin, lightweight cover glass -

Corning® Gorilla®

Glass

Ultra-slim, flexible glass

for thin and lightweight

applications

First EPA-registered

antimicrobial cover glass

1982

2007

1964

2003

2006

2003

AMLCD in TV

2010First Gen 10

substrate

Corning Lotus™ Glass

for OLED applications 20

11

Corning Lotus™ NXT Glass;

Corning Iris™ Glass

Corning® Gorilla® Glass SR+Corning® Gorilla® Glass 5Vibrant Corning® Gorilla®

Glass 2016

2012

2013

2015



FusionFusion

PrecisionForming

Extrusion

DisplayDisplay

Automotive

Life SciencesVessels

Manufacturing & Engineering Platforms4Core Technologies3 Market-Access Platforms5

VaporDeposition

OpticalCommunications

OpticalPhysics

CeramicScience

GlassScience

Our strategic framework reduces the cost of innovation and increases our likelihood of success

Mobile ConsumerElectronics

534



95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

Display glass market is expected to continue to grow, driven by demand for large-size TV and new applications

Monitor

TV

Mobile PC

TV screen size expected to be the biggest driver of area growth from

2016-2021

Display Glass Market

LCD TVAuto Interiors

Mobile PC &Small Applications

Small / Medium / Other

6.5B ft2

5B ft25.4B ft2

Source: IHS, Corning analysis



Large-size TVs are more appealing and accessible to consumers than ever before, accelerating adoption

Note: 1. Average North America retail TV price, 2. High Dynamic Range

Form FactorForm Factor Higher ResolutionHigher Resolution

Slim design and lighter weight• Easy to install for either stand

type or wall-mount type• Less space consumptionNarrower bezels allow for bigger VA

More pixels and better image quality• HDR2 – Brighter whites & blacks• Wide color gamut• More frames per sec. – sharper

images with less blurring

Affordable PriceAffordable Price

Attractive retail price• Retail price decline by >10%

CAGR (2010-2016)

$362$651

$1,680

$161 $265$640

$1,568

32" 55"40" 65"

2010

2016

LCD TV avg. retail price1($)

$3,262

Source: NPD, Corning analysis



28 17 15 14 14 14 12

8066 61 61 58 56 51

59

6156 54 55 57 56

2736

39 44 47 50 50

10 31 39 43 4648 50

612 15 18

22 25 3038.3

43.0 44.445.2 46.0 46.5

47.4

0

5

10

15

20

25

30

35

40

45

50

0

50

100

150

200

250

300

2013 2016 2017 2018 2019 2020 2021

10”-29” 32" 37"-43" 46"-50" 51"-59" 60"+

Worldwide average TV screen size continues to trend up as demand for large-size TV grows

Ave

rag

e S

cree

n S

ize

Un

its (

M)

Worldwide TV Market by Screen Size




Industry-wide surge towards G10+ investments are aimed at capturing large-size TV market

G10.5

Guangzhou

G10.5

Hefei

Additional G10.5/G11 fab investments

anticipated…

Additional G10.5/G11 fab investments

anticipated…

G11

Shenzhen



G10.5 platform enables excellent efficiency for large screen sizes

Six 75” TVs on Gen 10.5 =

94% glass UT

Two 75” TVs on Gen 8.5 =

56% glass UT

• Our Gen 10.5 melting platform provides the most efficient glass for 65” & 75” TVs

• Corning has superior G10+ capabilities…– First established Gen 10 fab and co-located with

our customer

– 8 years of proven experience in G10 glass operations, ~1B ft2 G10 glass shipped

– Proven manufacturing platform, technology, and performance

– Capability of wide range of thicknesses

– Fusion drawn technology is advantaged in G10+



G10+ capacity additions will need to be supported by growth of 60+ inch TV demand

-

200

400

600

800

1,000

1,200

2016 2017 2018 2019 2020 2021Fab 0

Fab 1

Fab 2

Fab 3WW 60”+ TV glass demand

M Sqft Large size TV demand & G10+ capacity

M ft2






Leveraging existing fusion assets is a core element of our strategy to maintain our leadership position

Maintain stable share

Maintain supply and demand balance

Leverage existing assets to pursue new opportunities

ST

RA

TE

GY

Example:• High performance display• Glass light guide plate• Cover glass



HH market by technology HH market by technology

RIGID

FLEX

LTPS-OLED Display Adoption (2016 – 2020) LTPS-OLED Display Adoption (2016 – 2020)

Wearable

31% 39%

Handheld

Tablet

20% 34%

1% 2%

Market for small and medium-sized high-performance displays will continue to grow in the next 5 years; LTPS-OLED emerging in portable devices

28% 32%38%

17%17%

17%9%

17%

21%

46%33%

23%

0%

25%

50%

75%

100%

2017 2019 2021

High Performance Display

LTPS LCD

a-Si

Flexible OLED

Rigid OLED




Total Pitch VariationTotal Pitch Variation

Up to 45% Better

Designed for LTPS and optimizes RGB Alignment

Up to 2x Lower

Enables tighter design rules and less panel thickness variability

Total Thickness Variation

Total Thickness Variation

Key attributes of Corning Lotus™ NXT Glass address the challenges of OLED’s manufacturing process

Up to 30% Higher

Designed and manufactured with uniform and high UV transmittance

UV Transmission UV Transmission

0

0.5

1

1.5

AlternativeGlass

Lotus NXTGlass

0

2

4

6

8

10

AlternativeGlass

Lotus NXTGlass

High Performance Display



40.936.9

33.630.6 29.4

27.7 26.0 24.434.4 31.4

28.024.7 24.6 21.2 19.3 19.7

38.034.5

31.328.3 27.8

25.023.4 22.5

05

1015202530354045

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

TV S

et T

hick

ness

(mm

)

Direct- type Edge - Lit Total

TVs continue to trend slim; average TV set thickness in China has reduced by nearly 70% in two years

China TV average set thickness

Average set thickness of TV featuring

Corning Iris™ Glass

Glass Light Guide Plate




Conventional LCD TV with polymer LGP

(Typically greater than 15 mm)

Conventional LCD TV with polymer LGP

(Typically greater than 15 mm)

TV with Corning Iris™ Glass(Less than 5 mm)

TV with Corning Iris™ Glass(Less than 5 mm)

Corning Iris™ Glass – a light guide plate for edge-lit LCD TVs – enables thin set designs, as thin as an average smartphone…

TV with Corning Iris™ GlassTV with Corning Iris™ Glass




Material

Enables designs lessthan 10 mm

Enables designs less than 5 mm

DimensionallyStable

Rigidity enables structural

component costreduction

EnablesBrightest Displays

Low Color Shift

Outstanding Coupling Efficiency

Iris™ Glass

PMMA*

MS*

Alternative Flat Glass

*PMMA or MS refers to specialty plastic material

Corning Iris™ Glass is gaining traction in TV and monitor applications

Corning is collaborating with ODMs and brands to optimize designs which leverage the superior optical, mechanical and thermal performance of glass




Corning is continuing to drive growth in cover glass demand through innovation

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

0.3 0.4 0.5 0.6 0.7 0.8 0.9

Nor

mal

ized

Aver

age

Heig

ht to

Fai

lure

Glass Thickness (mm)

Corning® Gorilla® Glass 5

Corning® Gorilla® Glass 4

up to1.5X

up to1.8X

Ref: Corning test puck on 180 grit

Real World DamageReal World DamageFMA results of >1000 of Field Returns

80% of field returns are linked to sharp contact damage

Cover Glass

Corning® Gorilla® Glass 5 improves face drop performance up to 1.5-1.8X vs. Corning® Gorilla® Glass 4

Source: Corning analysis



Wireless charging,True opaque colors,

RF Transparency

Anti-fingerprint, Anti-glare finish

Photorealistic decoration that

allows customization

Toughness of Gorilla Glass, with scratch

resistance approaching

alternative luxury cover materials

Corning® Gorilla® Glass has helped protect over 5 billion devices; new innovations tailored to customized, cutting-edge device requirements

Optimized for shoulder-height drops and

innovative product designs

Glass CeramicsAntiglare finish

Satin No Satin

Vibrant Corning®

Gorilla® Glass Corning® Gorilla®

Glass SR+ Corning® Gorilla®

Glass 5

Cover Glass



Corning’s extraordinary materials and process expertise creates new products and businesses for tomorrow’s Display industry…

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JZ SID v5.18.17 Final Approved€¦ · 0dunhw iru vpdoo dqg phglxp vl]hg kljk shuirupdqfh glvsod\v zloo frqwlqxh wr JURZ LQ WKH QH[W \HDUV /736 2/(' HPHUJLQJ LQ SRUWDEOH GHYLFHV +LJK