Domestic supply of LCD panels is self-sufficient

- May 30, 2018-


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There is an opportunity for rapid growth in the supporting industries of domestic panels. According to the country's relevant emerging industry planning, by 2015 China's new flat panel display panel must meet more than 80% of the domestic demand for color TV sets. There is still a big gap between the 45% in 2014 and the 80% target. In this sense, the panel assembly industry has a considerable market space. The domestic panel industry is still growing at a high speed. In 2013, the income of China's new display industry exceeded 100 billion yuan, and it will continue to maintain rapid growth in 2014, which is expected to approach 150 billion yuan.

  With the successive production of domestic 8.5-generation LCD production line projects, it is expected that the self-sufficiency rate of China's panels this year will exceed 45%. The highest generation panel production line in China is the 8.5 generation LCD line, a total of eight, BOE has three. At present, only the BOE Beijing production line and the TCL Huaxing Optoelectronics production line have reached full capacity. The Samsung Suzhou project was completed in October 2013 and is still in a “climbing phase”. The BOE Chongqing 8.5 generation LCD line, Hefei project, China Star Optoelectronics Phase II and China National Electric Panda Nanjing project are still in the construction phase.

This year, the import tariff on glass substrates will increase from 4% to 6%. In the second half of the year, tariffs on imported panels are expected to increase to 8%. Companies in the panel industry and upstream companies such as glass will face significant opportunities for development. With the support of domestic fiscal and taxation policies, the upstream material industry-related companies will usher in huge market opportunities. BOE is more impulsive in investing in the world's most advanced 10th-generation technology line. Prior to this, panel companies such as China Star Optoelectronics and Panda Electric were driven by the demand for the distribution of New Year's Day Spring Festival, and the overall large-sized panel shipments in December increased by 14% and 28% respectively. With the mass production of new high-generation lines built in China, the panel supply capacity will increase significantly. This year's panel self-sufficiency rate is expected to exceed 45%. However, the self-sufficiency rate of the upstream materials of LCD panels is less than 20%.