The world’s first 11-generation panel plant of China’s mainland China Star Optoelectronics Co., Ltd. was moved into the main equipment this week and is scheduled to be put into production next year. It is contracted to build a second 11-generation plant. The SuperVision 10.5 generation plant is also scheduled to be put into operation next year, making the large-size panel The renewed doubts about overcapacity will also severely test the future operating performance of the global panel makers.
Following the launch of BOE's first global 10.5-generation plant in Hefei this year, the first Shenzhen 11-generation plant (T6) of Huaxing Optoelectronics also announced the completion of the first exposure equipment move-in at the end of this year. A panel, put into production in 2019.
It is worth noting that Huaxing Optoelectronics has signed a contract with the Shenzhen Municipal Government and announced that it will build a second 11-generation plant (T7). In addition, the Ultra Vision Group Guangzhou 10.5 Generation Plant is also scheduled to start production in 2019. These main attackers are 65 and 75, respectively. The continuous production of more than 10.5 generations of large panel plants will bring about excessive pressure on the global LCD panel production capacity after 2019.
According to Li Yaqin, deputy general manager of the mainland city's restructuring agency, the T7 will be the sixth 10.5/11th generation line for global investment. The first five are BOE Hefei 10.5 generation line, BOE Wuhan 10.5 generation line, Super Vision Guangzhou 10.5 generation line, Huaxing Photoelectric T6 Plant, and Lejin Display Pao 10.5 generation line.
With the 10.5/11 generation line, panel production capacity will continue to increase in the coming years. Qunzhi predicted that the global production capacity of 10.5/11 in 2022 will reach 64 million square meters per year, equivalent to 5 to 60% of the global 8.5-generation capacity. Moreover, these capacities are rapidly increasing from 2018 to 2021.
The rapid expansion of the production of the mainland panel plant may result in excess panel production capacity. Li Yaqin said that once the supply is too fast, it will cause oversupply in the short term, and not only the profit of the panel maker but also the profits of upstream and downstream manufacturers.
Although the cost of the television brand factory can be reduced, this is not conducive to the sound development of the market. The upstream component suppliers of the panel will also face the pressure of price cuts. In the first quarter of the global panel leader LeGold display, the net loss after taxation was 98 billion won. This is the first time in six years. It also reflects the panel's excess production capacity, which has affected the profitability of panel makers. The profit performance of AUO and Innolux Group in the first quarter was better than market expectations, indicating that the Dual Tigers actively strived to improve operational performance.