Comments say domestic panel manufacturers have pushed Japan and South Korea

2016 LCD Panel Upstream Market Analysis

As the soul component of the display, the liquid crystal panel has always been the most critical part to determine the display performance, and the liquid crystal panel market has basically maintained a state of fierce competition after the anti-monopoly investigation of the year, especially in the panel market in recent years. The relationship between supply and demand has deteriorated, and the prices of LCD panels of various sizes have generally declined.

The reason is that although the market demand for liquid crystal panels (especially small size) has been growing, Chinese liquid crystal panel manufacturers are rising rapidly, the scale of production capacity is constantly following the market demand, and the supply is beginning to exceed the demand to form a buyer's market, resulting in domestic panels. The pair is frantically squeezing the living space of traditional panel giants represented by Japan and South Korea.

It shows that the domestic panel of evolution is still firmly in the hands of Japanese and Korean LCD panel manufacturers, but the situation is not optimistic. In the last quarter of 2015, Samsung's Samsung display business's final profit dropped 36% year on year, LGD's operating profit has dropped by 90%. Taiwan manufacturers are also having a hard time. There is no worst but worse. Qunchuang and Youda turned their profits from the previous quarter to losses.

BOE will be among the top three in the global industry. As the largest LCD panel manufacturer in China, BOE is not only rich in resources and financial resources, but also extremely enterprising. The whole company is in an upward stage of expansion. At the end of last month, BOE announced in Chengdu that it would invest 24.5 billion yuan in the construction of the second phase of the 6th generation LTPS/AMOLED production line project to produce AMOLED small and medium-sized high-end panel modules.

BOE, as the largest LCD panel manufacturer in China, has abundant resources and financial resources.

BOE has always maintained a strategic plan to guide the development of enterprises with technology research and development. Over the years, BOE has maintained high investment and high output in technology, and even in the loss stage, it has invested billions of dollars every year. At present, ADS panel technology, which is on an equal footing with IPS, PLS, VA and TN screens, was created by BOE around 2009. While maintaining low cost and high image quality, the ADS panel produced by it is more meaningful to break the international technology monopoly, reduce huge patent fees and effectively enhance the market competitiveness of products.

Today, BOE has the most complete LCD panel production line in its hands. There are 10 production lines built and under construction, of which 7 production lines have been put into operation. In terms of market position, BOE ranks first in the world in the market share of LCD screens for smart phones and tablets, and the market share of TV LCD screens ranks fourth in the world. Once the Hefei 10.5 generation line is put into production in 2018, BOE will be among the top three in the global LCD panel industry.

LTPS will be better than OLED at this stage

As TCL's most proud subsidiary company, Huaxing Optoelectronics has grown into a first-class large-scale LCD panel manufacturer in China. Some time ago, Huaxing Optoelectronics's six-generation LTPS (Low Temperature Polysilicon) LCD panel line in Wuhan was officially put into production. This is the first six-generation LTPS line in China, which mainly produces small and medium-sized LCD panels. Its production indicates that the monopoly of Japanese, South Korea and Taiwan panel manufacturers on high-level will be further broken.

Huaxing Optoelectronics is TCL's most proud subsidiary

The senior management of Taiwan's panel manufacturer Youda once said that OLED panels are very beautiful, but according to the current positioning, they are all taking the high-quality route of unit price. LTPS at this stage will have more market advantages than OLED. Panels made of LTPS technology are relatively high-end panels. Panels made of this technology have the characteristics of light weight, thin thickness, long service life and low energy consumption, at the same time, the display clarity, brightness is higher, and the stability of long-lasting work is stronger.

At present, LTPS polysilicon is one of the most competitive technologies in the small and medium-sized market. It will take time for OLED to be popularized on a large scale. At present, LTPS is one of the most competitive technologies in the small and medium-sized market. However, there are only a handful of LTPS production lines in mainland China. At present, only Huaxing Optoelectronics, BOE and Tianma have invested in building lines, but mass production has not yet formed. It is estimated that the number of 5.5-generation and sixth-generation LTPS lines put into production in China will increase to 5 in 2016, paving the way for the rapid expansion of the 1000-yuan mobile phone market.

Tianma finally came to the front from behind the scenes. At present, Shenzhen Tianma is the most ferocious development in the domestic small-size panel market. Last year Xiaomi put forward the concept of "new domestic products" in mid-July. The 1000-yuan flagship Red Rice Note2 immediately adopted a large number of electronic components from Taiwan and the mainland. The Red Rice Note2 suddenly set the domestic Tianma screen on fire. Tianma, which was previously unknown but has been cooperating with first-line mobile phone manufacturers for a long-line, finally came to the front.

Tianma, which was previously unknown but has been cooperating with first-line mobile phone manufacturers for a long time, finally moved from behind the scenes to the front in the field of small-sized LCD panels. Its market share, especially the high-end market, has been occupied by JDI, Sharp, Samsung and LG for a long time. However, the recent popularity of the 1000-yuan mobile phone market has made domestic mobile phone panel manufacturers see spring. According to statistics, Tianma screens used by Xiaomi and Huawei have a 30% market share in the low-cost of amorphous silicon panels, it has a market share of 15-20% in the low-temperature polysilicon panel market, only behind JDI.

The AMOLED panel currently displayed by Tianma of Japan and South Korea is 5.46 inches

At present, Tianma is actively laying out diversified markets. The AMOLED panel displayed a few days ago is 5.46 inches with a resolution of only 720P. There will be 5.0, 5.5 inches and 1080P resolution AMOLED panels in the future. In the first half of 2016, 5 inches 720p AMOLED screens will be mass produced first. 4.5 generations of production lines have been built in China, and 5.5 generations of production lines are planned.

Destined to be a restless year

Display is the future. The current display mainly depends on LCD panels. In 2015, global LCD panel shipments were 0.265 billion, up 6.9 year on year. Mainland panel capacity expansion, global shipment ranking reshuffle. LGD surpassed Samsung Display with a market share of 20.6, ranking first, third, BOE Generation Youda fourth, followed by Youda, Huaxing Optoelectronics.

Qunchuang Third BOE is actively laying out the 2016 panel market and recently announced that it plans to invest 24.5 billion yuan to build the second phase of Chengdu's 6th generation LTPS/AMOLED production line. And TCL's Huaxing Optoelectronics has also taken action. According to sources, China Development Fund plans to increase the capital of Huaxing Optoelectronics Technology Co., Ltd. in cash of 1.684 billion yuan.

Once Hon Hai acquires Sharp, Hon Hai's Sharp will invest 200 billion yen in OLED business, while once Hon Hai acquires Sharp, Hon Hai's Sharp will invest 200 billion yen in OLED business for research and development and mass production equipment for OLED display business. Through a series of investments to achieve years of ambition in the LCD market, 2016 is destined to be another uneasy year for panel manufacturers.

Analysis of the upstream market of 2016 liquid crystal panel liquid crystal panel, as the soul component of the display, has always been the most critical part to determine the display performance, while the liquid crystal panel market has basically maintained a state of fierce competition after the antitrust investigation of that year. Especially in recent years, the supply and demand relationship in the panel market has deteriorated, and the prices of LCD panels of various sizes have generally declined.

The reason is that although the market demand for liquid crystal panels (especially small size) has been growing, Chinese liquid crystal panel manufacturers are rising rapidly, the scale of production capacity is constantly following the market demand, and the supply is beginning to exceed the demand to form a buyer's market, resulting in domestic panels. The pair is frantically squeezing the living space of traditional panel giants represented by Japan and South Korea.

In the last quarter of 2015, LGD's operating profit was greatly reduced by 90%. The thin camel was bigger than the horse. Fortunately, the market recognition and technical details determine that the high-end panel module market is still firmly in the hands of Japanese and Korean LCD panel manufacturers. However, the situation is not optimistic. In the last quarter of 2015, Samsung's Samsung display business's final operating profit dropped 36% year on year, and LGD's operating profit dropped 90%. Taiwan manufacturers are also having a hard time. There is no worst but worse. Qunchuang and Youda turned their profits from the previous quarter to losses.

BOE or will be among the top three in the global industry

BOE, as the largest LCD panel manufacturer in China, is not only rich in resources and financial resources, but also extremely enterprising. The whole company is in the stage of expansion and rise. At the end of last month, BOE announced in Chengdu that it would invest an additional 24.5 billion yuan in the construction of the second phase of the 6th generation LTPS/AMOLED production line project in Chengdu on the basis of the investment of 22 billion yuan in the first phase to produce AMOLED small and medium.

As the largest LCD panel manufacturer in China, BOE has strong resources and financial resources. BOE has always maintained a strategic plan to guide the development of enterprises with technology research and development. Over the years, BOE has maintained high investment and high output in technology, and even in the loss stage, it has billions of dollars every year. Big investment. At present, ADS panel technology, which is on an equal footing with IPS, PLS, VA and TN screens, was created by BOE around 2009. While maintaining low cost and high image quality, the ADS panel produced by it is more meaningful to break the international technology monopoly, reduce huge patent fees and effectively enhance the market competitiveness of products.

Today, BOE has the most complete LCD panel production line in its hands. There are 10 production lines built and under construction, of which 7 production lines have been put into operation. In terms of market position, BOE ranks first in the world in the market share of LCD screens for smart phones and tablets, and the market share of TV LCD screens ranks fourth in the world. Once the Hefei 10.5 generation line is put into production in 2018, BOE will be among the top three in the global LCD panel industry.

LTPS will be better than OLED at this stage

As TCL's most proud subsidiary company, Huaxing Optoelectronics has grown into a first-class large-scale LCD panel manufacturer in China. Some time ago, Huaxing Optoelectronics's six-generation LTPS (Low Temperature Polysilicon) LCD panel line in Wuhan was officially put into production. This is the first six-generation LTPS line in China, which mainly produces small and medium-sized LCD panels. Its production indicates that the monopoly of Japanese, South Korea and Taiwan panel manufacturers on high-level will be further broken.

Huaxing Optoelectronics is TCL's most proud subsidiary. The senior management of Taiwan panel manufacturer Youda once said that OLED panels are very beautiful, but according to the current positioning, they are all taking the high-quality route of unit price. LTPS at this stage will have more market advantages than OLED. Panels made of LTPS technology are higher-end panels. Panels made of LTPS technology have light weight, thin thickness and long service life, the characteristics of low energy consumption, while showing clarity, higher brightness, and stronger stability of long-lasting work.

At present, LTPS polysilicon is one of the most competitive technologies in the small and medium-sized market. It will take time for OLED to be popularized on a large scale. At present, LTPS is one of the most competitive technologies in the small and medium-sized market. However, there are only a handful of LTPS production lines in mainland China. At present, only Huaxing Optoelectronics, BOE and Tianma have invested in building lines, but mass production has not yet formed. It is estimated that the number of 5.5-generation and sixth-generation LTPS lines put into production in China will increase to 5 in 2016, paving the way for the rapid expansion of the 1000-yuan mobile phone market.

Tianma finally came to the front from behind the scenes. At present, Shenzhen Tianma is the most ferocious development in the domestic small-size panel market. Last year Xiaomi put forward the concept of "new domestic products" in mid-July. The 1000-yuan flagship Red Rice Note2 immediately adopted a large number of electronic components from Taiwan and the mainland. The Red Rice Note2 suddenly set the domestic Tianma screen on fire. Tianma, which was previously unknown but has been cooperating with first-line mobile phone manufacturers for a long-line, finally came to the front.

Tianma, which was previously unknown but has been cooperating with first-line mobile phone manufacturers for a long time, finally moved from behind the scenes to the front in the field of small-sized LCD panels. Its market share, especially the high-end market, has been occupied by JDI, Sharp, Samsung and LG for a long time. However, the recent popularity of the 1000-yuan mobile phone market has made domestic mobile phone panel manufacturers see spring. According to statistics, Tianma screens used by Xiaomi and Huawei have a 30% market share in the low-cost of amorphous silicon panels, it has a market share of 15-20% in the low-temperature polysilicon panel market, only behind JDI.

At present, the AMOLED panel displayed by Tianma is 5.46 inches. At present, Tianma is actively distributing diversified markets. The AMOLED panel displayed a few days ago is 5.46 inches with a resolution of only 720P. There will be 5.0, 5.5 and 1080P resolution AMOLED panels in the future. In the first half of 2016, the 5-inch 720p AMOLED screen will be mass produced first. 4.5 generations of production lines will be built in China, and there will be 5.5 generation of production lines.

Destined to be a restless year

Display is the future. The current display mainly depends on LCD panels. In 2015, global LCD panel shipments were 0.265 billion, up 6.9 year on year. Mainland panel capacity expansion, global shipment ranking reshuffle. LGD surpassed Samsung Display with a market share of 20.6, ranking first, third, BOE Generation Youda fourth, followed by Youda, Huaxing Optoelectronics.

Group Creation Third

BOE is actively laying out the 2016 panel market and recently announced that it plans to invest 24.5 billion yuan to build the second phase of Chengdu's 6th generation LTPS/AMOLED production line. And TCL's Huaxing Optoelectronics has also taken action. According to sources, China Development Fund plans to increase the capital of Huaxing Optoelectronics Technology Co., Ltd. in cash of 1.684 billion yuan.

Once Hon Hai acquires Sharp, Hon Hai's Sharp will invest 200 billion yen in OLED business, while once Hon Hai acquires Sharp, Hon Hai's Sharp will invest 200 billion yen in OLED business for research and development and mass production equipment for OLED display business. Through a series of investments to achieve years of ambition in the LCD market, 2016 is destined to be another uneasy year for panel manufacturers.