40 billion yuan of total investment, 1198 acres of land area, 1.29 million square meters of construction area, 90,000 pieces / month glass substrate processing capacity ... This group of amazing figures from the local panel giant BOE recently built in Hefei, the 10.5th generation of TFT-LCD The production line is also the world's highest generation LCD panel line. The production line project mainly produces high-end smart TVs and digital information displays with over 60 inches and ultra-high resolution, and is expected to be put into production in the second quarter of 2018. When the global panel industry stepped into the "cold winter" and "overcapacity theory", BOE launched the 10.5 generation line, plus the large-size LCD is against the trend or another mystery?
How does BOE add a large-size LCD to the trend?
"Super cold winter" and "overcapacity" in the panel industry
This year, the growth rate of the mobile phone market slowed down, the PC market conditions were lower than expected, and the demand for panels relied entirely on television to support the overall situation. However, TV panel prices are now beginning to fall, and panel prices for some sizes have been reduced to the cost of the manufacturer's materials, and the price decline will continue. 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. Recently, panel factories have successively closed their old production lines, and the global panel industry has entered a cold winter period.
At the same time, the scale of panel investment is in the midst of the expansion of power, and the question of overcapacity is endless. Both BOE (Chongqing) and Huaxing Optoelectronics plan to increase the monthly production capacity of production capacity from 50,000 to 60,000 pieces this year to 190,000 pieces, and AUO and Innolux also plan to increase production capacity by 30,000 pieces per month. In addition, BOE The 8.5-generation plants of Fuzhou, Panda Optoelectronics Chengdu and Huike Chongqing will start mass production in 2017. At that time, there will be a total of 11 8.5-generation large-size panel production lines. Excessive competition has brought the risk of continuous oversupply of LCD panels. 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.
Taiwan panel makers have already felt pressure. On December 1st, Hon Hai’s Chairman Guo Taiming and QunChuang’s General Manager Wang Zhichao made recommendations to the panel industry when they met with Chen Deming, the president of the Association for Relations Across the Taiwan Straits. In addition to hoping that the mainland panel industry will not expand its production indefinitely, it also hopes that Taiwanese panels can cancel 5% tariffs when they enter the mainland, at least better than Korean companies.
Although the industry has encountered a cold winter, BOE has not slowed down the pace of the high-generation panel line. On October 11, Fuzhou 8.5 generation of new semiconductor display device production line started construction; on December 2, the world's highest generation 10.5 generation thin film transistor liquid crystal display device (TFT-LCD) production line started in Hefei. Why does BOE go against the trend?
BOE Plus Large Size LCD Sword refers to 8K Ultra HD era
“There is no weak market, only weak products, not overcapacity, but technology backwardness. In fact, the prospect of LCD panels is still broad.” Zhang Yu, vice president of BOE, said that although the shipments decreased, the total shipment of panels The area is increasing, which shows that large size is becoming the mainstream of consumption. Li Chen, a senior analyst at the OFweek Industry Research Center, believes that the term “overcapacity” is one-sided. The market law indicates that in the case of oversupply, new technological innovations and industrial chain integration will be promoted, while manufacturers located downstream of the industrial chain. There will also be better opportunities for development.
Ji Kebin, president of Corning Glass Technology Group, also believes: "The future will be a large-size LCD TV." Therefore, while BOE announced the construction of a 10.5-generation line factory in Hefei, Corning, the world's largest supplier of glass substrates, also announced its proximity to BOE 10.5. The line factory invested in a 10.5-generation glass substrate manufacturing plant.
According to HIS DisplaySearch data, the demand for flat panel display market in the world will grow steadily in the next five years. 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.
The 10.5-generation line built by BOE is mainly used for cutting large-size ultra-high-definition displays of 65 inches or more. Paul Gray, principal analyst at IHS, said, "In the past decade, the average screen size of the TV market has increased by one inch per year. Before the popularity of 70-inch TVs, the screen size will continue to increase." By 2019, 65 inches and above. The size of TV shipments will grow at a compound annual growth rate of 17%, and large-size ultra-high-definition panels will have huge market demand. The Hefei BOE 10.5 line is expected to be put into production in the second quarter of 2018, which is in line with the market development trend.