) may see its revenue grow as it attempts to capture the untapped
market of cover glass for flexible displays. It recently
announced its productive capability in a new technology to shape
Gorilla Glass, a cover glass, into any three dimensional (3D) form.
This enables Corning to mold Gorilla Glass into any shape and offer
sturdy protection for flexible or curved displays. Though no date
has been specified, the new 3D-shaped Gorilla Glass will be ready
for commercial launch in 2014. Gorilla Glass forms a part of
Corning's Specialty Materials segment.
Gorilla Glass is a protective cover glass used in consumer
electronics such as mobiles, tablets and notebooks to protect
display screens. It is scratch resistant and highly durable
compared to traditional display glass, and is now used on more than
1,100 product models across 33 major brands. Mobile phone
manufacturers such as Apple and Samsung, and tablet and notebook
manufacturers like Dell and HP use Gorilla Glass for many of their
devices. Corning is also coming out with Gorilla glass applications
in markerboards, automobiles and appliances.
See our complete analysis of Corning here
3D-shaped Gorilla Glass Offers A $3 Billion Opportunity
As per IHS, a leading research provider, the flexible display
market is expected to grow to $41 billion by 2020. This
implies that the market for cover glass for flexible displays may
be worth $12 billion by 2020, since cover glass accounts for 30% of
the cost of a display. Assuming that Corning is able to capture
25%-30% of this market with its first-mover advantage and just
three other major players in the cover glass market as competition,
this effectively presents an opportunity to generate an additional
revenue of $3-3.6 billion by 2020.
Corning's new glass forming technology also suggests that the
company is trying to broaden its offering in the curved display
market. In 2012, Corning entered the curved display market with
Willow Glass, a thin flexible display glass. The 3D-shaped Gorilla
Glass would be able to complement flexible displays like Willow
Glass, and offer greater protection. The glass can be shaped to
follow the curve of the wrist.
The curved display market for mobile phones, which is still at a
very nascent stage, presents an opportunity for the 3D-shaped
Gorilla Glass. At present, there are just two mobile phones
offering curved displays, Samsung's Galaxy Round and LG's Flex, but
neither of them have a protective glass. The 3D-shaped Gorilla
Glass will be able to cater to such curved display mobile
The 3D-shaped Gorilla Glass may also be used on wearable
displays such as the rumored Apple watches.
Corning will establish vertically integrated operations
in Taiwan to manufacture 3D-shaped Gorilla Glass
Corning will tie up with Taiwan based G-Tech Optoelectronics, an
optical glass manufacturer, to establish a facility in Taiwan that
would help integrate the entire manufacturing process for the
3D-shaped Gorilla Glass. Instead of having to ship flat sheets
of Gorilla glass to Taiwan and then shape it into different forms,
which involves a lot of logistical complexity, this facility will
enable Corning to manufacture and shape Gorilla Glass under one
roof. Corning believes that this offers cost and time advantages
which will also benefit its customers.
How a Company's Products Impact its Stock Price at