Chinese Factories Such As BOE, Huaxing Optoelectronics Attack Large-size LCD Panels

- Jan 28, 2020-

The Chinese factory changed its strategy toward large-size LCD panels. It is expected to surpass the Korean factory in the next few years, and for the first time to become the global leader in large-size panel production.


IHS Markit released a report on Sunday that China ’s shipments of large-size LCD panels larger than 32 inches in 2017 are expected to reach 320,000 pieces, a 33% increase from 2016. It is worth noting that 32-inch products accounted for a 13% reduction in shipments from Chinese factories, revealing that Chinese factories are actively pursuing larger size panels.


The larger the panel size, the higher the production technology, and the better the output efficiency and profit. Chinese factories turning to the development of large-size panels will not only pose a greater threat to Korean factories, but also improve profitability. Including BOE, CSOT, and CEC-Panda, all resources are concentrated on expanding the production capacity of 43-inch, 55-inch and 58-inch panels.


The report predicts that China will become the country with the largest TFT LCD panel production capacity by the end of 2018. Analysts further speculate that Chinese factories may replace Korean factories and become the world's largest large-size panel. In 2015 and 2016, the global LCD TV panel shipments of Chinese factories accounted for 33.2%, second only to the Korean factories' 36.4%.


The report points out that the demand for OLED TV panels is rising slowly, and in the foreseeable future, LCD will still dominate the market demand for large-size panels. The report estimates that LCD will account for 98.2% of TV panels in 2020, while OLED will only account for 1.8%.