BOE: Two-handed Strategy Plays The Panel Market

- Jun 28, 2018-

At present, BOE has a total of 10 panel plants. There are also two 6-generation AMOLED panels and a second 10.5-generation TFT LCD panel plant. In recent years, with the expansion of 1 to 2 new plants each year, it has become the world's largest panel maker and has an absolute influence on panel market prices.

In the panel market, BOE adopts two strategies. In order to seize the large-size TV market, do not hesitate to bargain for sale; and in the 32-inch panel market with mastermind, it is to take measures to reduce production, brewing prices to fight profits.

Currently, BOE and Huaxing Optoelectronics are the world's largest 32-inch panel suppliers. They can cut 18 wafers at the 8.5-generation plant, which is quite competitive.

At present, 65-inch panels are still dominated by Taiwan-Korea panel makers. Samsung, LGD, AUO and Innolux are the four panel makers that account for over 90% of the market. Earlier this year, BOE 10.5-generation factory was mass-produced, locking the production of super-sized 65-inch panels. Although the quality of BOE's 65-inch panel is still lower than that of the Taiwan-Korea panel plant, even if the current production cost is more than 280 US dollars, it will continue to struggle for shipments and seize the large-size panel market.

On the 32-inch panel with the largest volume of shipments and the highest market share, Jingdongfa reduced its supply in the second quarter, converting the 8.5-generation capacity to 55-inch panels, resulting in a 32-inch supply and demand in just one quarter. Reversed. In the third quarter, downstream manufacturers pulled goods, BOE and China Star Optoelectronics immediately shouted up, relying on small and medium-sized TVs to lift profitability performance.