LGD's July 25th law conference announced the following three major investment decisions that the board of directors just passed. 1P10 expands the G10.5 generation of large-size OLED production lines. In the early stage, it may first mass-produce LCDs, and then turn to OLEDs after the technology matures. In the long run, G10.5 will adopt printing technology; 2 New G8.5 generation OLED panel production line in Guangzhou, with a new capacity of 60,000 pieces/month, expected to be mass-produced in 2019; 3 expansion of G6 POLED production line, new capacity 3 10,000 pieces / month. These three investment plans are all related to OLED, and two of them are high-generation OLED production lines, which has aroused widespread concern in the industry.
OLED TV panels are currently exclusively produced and supplied by LGD. Chinese manufacturers BOE also have experimental line bodies, which are still not mass-produced. Previously, LGD was very cautious about investing in high-generation OLED panel production lines, and its production capacity grew slowly. Over the years, with the support and cultivation of LGD and its strategic customers, consumers in all regions of the world have gradually increased their awareness of OLED TV and its technological advantages. Especially in the European and American markets, OLED has significantly increased its market share in the high-end TV market. Therefore, in 2017, the OLED TV market also welcomed Sony's participation.
Image quality and appearance are the main axes of display technology improvement. OLED TVs still represent the trend of next-generation display products with their excellent image quality and flexible form of expectation. However, due to factors such as imperfect upstream supply chain and high cost, Sigmaintell believes that OLED TV will remain positioned in the high-end market in the short term, and the market size cannot be expanded rapidly. It is expected that LCDs will remain in the next 5-8 years. The TV panel is dominant. The future development of OLED TV panels needs to be continuously improved in the following aspects:
1. The decline in costs requires the improvement of the industrial chain, the maturity of process technology and the “three-horse carriage” of economies of scale. At present, the suppliers of organic light-emitting materials for OLEDs are few and highly monopolized, and cause serious material waste in the production process, and the production cost is high. The key to winning the OLED TV market lies in the cost control, the active cooperation between the upstream and downstream industry chains, and the continuous improvement of the process technology of the panel manufacturers.
2. The expansion of supply scale requires the participation of more panel manufacturers. The limited size of OLED TVs is mainly limited by supply. The market needs more panel manufacturers to expand the supply of OLED TV panels. At present, in addition to LGD, Chinese manufacturers are actively purchasing OLED TV panel production technology. As the technology matures, it is believed that participating manufacturers will increase and seize the opportunities of the next generation of display technology.
3. The brand effect remains to be fermented. As a high-end product, OLED TV has a very obvious brand-driven effect. After Sony joins, will there be more brands to participate? Samsung Electronics will begin to purchase LCD TV panels from LGD this year. Whether it will further cooperate in the field of OLED TV is expected.
LGD suddenly announced two investment plans for high-generation OLED panels. It can be seen that its investment in OLED TV panels has accelerated significantly, bringing more expectations to the market. According to Sigmaintell, in 2017, thanks to capacity expansion and yield improvement, the global shipment of OLED TV panels is expected to be 1.6 million units, and the penetration rate will increase to 0.6%, and in 2019 Guangzhou's new G8.5 generation OLED production line will be mass-produced, and the penetration rate of OLED TV panels will accelerate. It is estimated that by 2020, the global shipment of OLED TV panels will reach 4 million units, and the penetration rate will increase to 1.6%. By 2022, the global OLED TV panel will reach 7.5 million units, and the penetration rate will increase to 3%. .