According to relevant data, as China's flat-panel manufacturers continue to expand production capacity, it is expected that by 2020, the global large-size (9-inch and above) TFT LCD panel production capacity will increase by more than 9% annually.
It is estimated that by 2021, China will have six 10.5 / 11G production lines in operation, two of which are from BOE and Huaxing Optoelectronics (CSOT), one from Foxconn Electronics and one from Chongqing HKC.
It is particularly worth mentioning that Chongqing HKC and China Electronics (CEC) are expected to actively expand production capacity in the next few years following BOE and Huaxing Optoelectronics. In 2019, Chongqing HKC and China Electronics' large-size LCD panel production capacity will increase by more than 55%.
As the capacity of Chinese manufacturers continues to expand, the business prospects of other tablet manufacturers outside China will also be affected. Korean panel makers are expected to start cutting LCD panel production lines in 2019. It is predicted that by 20122, the monthly production of the LG Display 8.5G line will be reduced by approximately 120,000 substrates compared to 2018.
However, due to the large-scale capacity expansion implemented between 2018 and 2020, the oversupply and the decline in revenue will lead to panel makers becoming more conservative about new investments. In this context, global large-size panels are expected to be 2022-2023. Capacity growth will be less than 2%.