With the CLP Nanjing 8.5 generation line, BOE Chongqing 8.5 generation line, Huaxing Optoelectronics Shenzhen second 8.5 generation line has been announced production, China has become an important panel production base in the world. At the same time, the 8.5-generation production line of domestic mass production will reach 8 at the end of this year. Experts believe that the traditional TFT-LCD panel industry will face risks in the face of so many 8.5-generation lines, and AMOLED will be the next investment focus. .
Domestic panels staged "curve overtaking"
In the information society, flat-panel display is everywhere. Whether it is TV, computer, smart phone, wearable device, etc., it is inseparable from the support of the display screen. The flat-panel display industry has thus become a “pillar industry” in the field of electronic information.
As a global consumer electronics manufacturing country, China's "lack of core and less screen" was once a major bottleneck restricting the development of related industries in China. In recent years, China has continuously increased investment in the flat panel display industry. At the same time, the government has also introduced a series of industrial support policies to promote the pace of panel localization.
In October 2014, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the 2014-2016 new display industry innovation development action plan, clearly proposing that by 2016, China's new display industry will strive to reach the second place in the world according to the area. The global market share exceeds 20%, and the overall scale of the industry exceeds 300 billion yuan.
The flat panel display industry has become one of the emerging industries that the country is strongly advocating. Because the display panel is in the middle of the industrial chain, it has the role of supporting the industry chain, which can drive the development of pillar industries such as raw materials, equipment manufacturing and electronic information. Therefore, it will occupy an important position in China's national economy. In May this year, the state introduced China Manufacturing 2025, which requires a shift from a manufacturing power to a manufacturing power, and will also bring more development momentum to the emerging display industry.
On June 1 this year, the China-South Korea Free Trade Agreement (FTA) was formally signed, and more than 90% of the products of both parties will enter the era of zero tariff. Among them, in order to alleviate the impact of Korean imported panels on the domestic panel industry, the relevant provisions stipulate that the panel industry tariffs will adopt the “8+2” strategy, that is, after the agreement takes effect, there will be a “protection period” of up to 8 years, maintaining the current 5%. Tariffs, until the ninth year tariffs fell to 2.5%, the first 10 years to zero tariffs.
In the eyes of the industry, the eight-year tariff protection period has maximized the time to reduce tariffs, leaving domestic panel manufacturers with sufficient development time. Domestic panel companies will also make full use of this time window to enhance their market competitiveness. From the national promulgation of the 2014-2016 new display industry innovation development action plan, to the relevant panel provisions of the China-South Korea Free Trade Agreement, it can be seen that the state is fully promoting the development of the domestic display panel industry at the policy level.
TFT-LCD panel storage excess capacity risk
Since the beginning of this year, with the announcement of the CLP Panda Nanjing 8.5-generation line, the BOE Chongqing 8.5-generation line, and the Huaxing Optoelectronics Shenzhen second 8.5-generation line, China has become an important panel production base in the world, and according to the Tuoba Industrial Research Institute. At the end of this year, there will be several 8.5-generation lines to be put into mass production, and the 8.5-generation production line of mass production will reach 8 at that time.
However, behind the domestic panel production lines have been put into production, the global panel demand has begun to slow down. According to the latest data from the survey agency HISDisplaySearch, global panel shipments in the first quarter of 2015 increased by 3.1% year-on-year, while shipments in the second quarter are expected to decline by 1.4%. In the first half of 2015, the global panel market showed a downward trend.
The industry believes that facing so many 8.5 generation lines, for the global panel industry, it is not only a feast, but also a "catastrophe", when the contradiction between supply and demand of global panel production capacity is more prominent.
Gao Hongjin, a professor at Tsinghua University, said, “In 2015, several 8.5-generation lines were mass-produced one after another, which is a huge test for the market. I believe that the development of high-generation LCD industry should be encouraged. The output of traditional TFT-LCD panels is large, and the technology is also Very mature, no longer blindly increase investment."