Panel industry path choice: China plus size large size Korea bet OLED

- Dec 13, 2018-

With the construction of the world's first 10.5th generation thin film transistor liquid crystal display device (TFT-LCD) production line, China has become the country with the highest generation of LCD panel lines.


In recent years, with the layout of various size panel production lines by domestic panel companies such as BOE and the SOC-level picture quality chips independently developed by Hisense, the era of “the lack of core and less screen” in China's color TV industry has gradually become history.


Although the layout of domestic panel companies has broken the monopoly of Japan, South Korea and Taiwan in this field, with the development of the industry and the rapid layout of various companies, the panel industry is welcoming another industry winter since the 2008 financial crisis. .


Panel industry winter is coming "Super cold current" attack


IHS DisplaySearch, a professional market research agency, recently warned that the panel price is close to the manufacturer's material cost at this stage, and the price decline will continue. The Taiwanese manufacturers such as Innolux and AUO have been losing their losses for two quarters this season. The overall price drop surpassed 2008. The financial tsunami period.


In the fourth quarter of this year, Samsung and mainland TV brands slashed panel orders, resulting in increased price pressure on TV panels. The cumulative price drop in the second half of the year reached 20-30%. This is the deepest decline since the financial turmoil. It is called the panel industry super cold.


Xie Qinyi, senior research director of IHS DisplaySearch, said that the price of the panel will not fall, and the price will continue to fall from December to January and February. This year, the overall panel production area increased by 8%, but the demand area growth rate was only 5%, the panel supply exceeded demand, and the output value fell by 3%. It is estimated that the overall panel production capacity will increase by about 7% next year, and the increase in demand will be about 5 to 6%, which is still a year of oversupply.


Domestic enterprises go upstream, plus large size


Although the industry has encountered a cold winter, BOE has not slowed down the pace of the high-generation panel line. On October 11, the production line of Fuzhou 8.5 new semiconductor display device was started. On December 2, the world's highest generation 10.5 generation thin film transistor liquid crystal display device production line was started in Hefei.


Why does BOE go against the trend? According to industry analysts, the biggest impact on TV panel price collapse is 32-inch. Taiwan has almost withdrawn from the 32-inch panel market, and the Korean panel maker will also reduce production of 32-inch panels next year. On the contrary, large size is gradually being sought after by consumers. BOE has invested in the production of large-sized panel wires.


According to the data, in 2015, the shipment of 50-inch TV panels and above was 48.7 million. With the support of large-size panel prices, the shipment size of 50-inch and above is expected to reach 55.4 million in 2016. In addition, the market of 60 inches or more has become the focus, and shipments will further increase from 6.8 million this year to 8.4 million next year. It is expected that the shipment ratio of 60 inches or more will increase to 15% in 2016, and the TV panel will be enlarged. The progress can be seen.