In the past, the panel was hailed as the sunset industry. In response, IDC stated that it is still quite optimistic about the development of the panel industry. This industry continues to improve both in terms of production capacity and product technology.
IDC global hardware assembly research team analyst Chen Jianci pointed out that with the new production capacity continued to open, it is not difficult to see that the panel industry capacity is not yet limit.
“At present, the capacity of the panel industry can increase the average area of New York Central Park by one year.” Chen Jianci, an analyst at IDC Global Hardware Assembly Research Group, points out that since 2016, the industry’s existing capacity has continued to increase, even though Samsung’s The L6 and L7-1 plants are shut down. It seems that the panel has both reduced production capacity, but there are still new production lines. The production lines of the 8.5th and 8.6th generation plants of HKC (Whistco) in the mainland and the 8.5th generation BOE plant are used. As well as the continuous production of Huaxing Optoelectronics' 10.5G plant, it is not difficult to see that there is no limit to the panel industry capacity.
Chen Jianzhu said that it is expected that the capacity growth rate in the next three years will reach the total capacity of SDC (Samsung Display) in 2015; interestingly, due to the increase in panel production capacity, the annual composite growth rate will reach 7%, and the average panel size will have to grow within the next five years12 Well, that is, the increase rate of more than 2% per year increases upwards, so that these new capacities can be fully absorbed by 2020. In other words, this also means that the panel makers at this stage will actively increase the size of TV screens they produce and even the LCD panels of other applications.
In terms of industry, due to fierce competition, the 8.5-generation plants of BOE and Huaxing Optoelectronics have been successively cast. The growth rate of shipments will gradually increase with the increase of production capacity, and the growth rate will exceed 30%; Chen Jianzhuo It is believed that as the production capacity of these manufacturers continues to expand, they will also lead them into the industry leading group, which will effectively drive down the cost of each panel. With the increase in the competitive advantage of these manufacturers, the competitive advantage between industries will become increasingly fierce. .
In the fierce competition situation of panel makers, smaller and less capital-intensive manufacturers must seek alternative niche markets to work on notebook computers or panel-related panels. Big companies change their business strategies and turn to high quality. For example, Samsung Display gradually eliminated the company’s existing capacity in LCDs and instead developed AMOLED panels.
On the other hand, high-definition TV panels, or large-sized panels, will be the focus for panel makers in 2017 and even 2020 in the future. The reason is that panel makers want higher profits, and brand factories also have larger size requirements. Chen Jianzhu believes that large-size screens will also drive 4K resolution technology growth. In the past two years, 4K UHD's annual compound growth rate has risen sharply, and YOY (annual revenue growth rate) has also grown by nearly 50% every year.
Chen Jiansu also predicts that there will be a 4K UHD resolution specification for every three TV panels in 2017.
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