China's second largest LCD panel maker China Star Optoelectronics Technology (CSOT) is set to start mass production at its 8.5G plant on October 12, 2011, becoming the second maker of the country to operate a line of that generation, following BOE Technology.

CSOT's 8.5G plant will have an initial output of 3,000 substrates with a yield rate of over 70%, according to industry sources. Production will be lifted to 18,000 substrates by December with a yield rate surpassing 90%.

The CSOT plant is expected to reach full capacity of 120,000 substrates by the fourth quarter of 2012, capable of churning out 17.5 million LCD TV panels sized 26, 32, 46, and 55 inches per year, the sources said.

Construction of CSOT's 8.5G plant started in March 2010, and pilot run began in August 2011. Total investment of the project reached CNY24.5 billion (US$3.83 billion).

CSOT's 8.5G plant sources IC components from Himax Technologies, Novatek Microelectronics and Raydium Semiconductor, according to the sources. Polarizers are supplied by Nitto Denko, LG Chem and Sumitomo Chemical. Huizhou TCL Coretronic, Coretronic (Suzhou), Radiant Opto-Electronics and Kenmos Technology are major suppliers of backlight units (BLUs). Seoul Semiconductor supplies LEDs. CSOT produces color filters (CFs) in-house for the 8.5G plant.

The sources estimate that total output value of the 8.5G plant's whole supply chain may reach CNY100 billion per year.

Nearly 200 people from the panel sector in Taiwan and Korea were recruited by CSOT for the 8.5G project, the sources said.

The Creative Life (TCL) and Samsung Electronics are main shareholders of CSOT. TCL is China's largest LCD TV maker, while Samsung owns the world's largest LCD TV brand.