Chinese TV panel supply rate to reach 85%...Korean display in concern
Park Seul Gee | seul@ | 2017-06-07 09:43:23
[Digital Times, Park Seul-gee] Chinese TV makers` use of liquid crystal display (LCD) panels in Chinese markets is projected to rise to 85% this year. Korean display companies, which have lost their main demand due to the expansion of Chinese domestic TV panel use, are deepening their concerns.
According to industry and foreign sources on June 6, Chinese TV makers` domestic panel adoption rate has been raised from 54% in 2014 to 80% last year. Some analysts point out that this year the figure will rise to 85%, and sooner or later it will hit the full self-sufficiency age.
This is because Chinese display makers such as BOE and China Star are rapidly expanding their large LCD production facilities. BOE has started operation of the 8.5th generation LCD production facility `B10` in the first quarter of this year. The company plans to operate the 10.5 generation `B9` in the second half of next year. Meanwhile, China Star is expected to start an 11th generation LCD production plant from March 2019. The total number of 8.5, 10.5, and 11th generation LCD panel factories in China will reach 15 in 2019.
This move is expected to have a burden on the Korean display industry. It is because competition itself is not easy as the technology gap is narrowed as the price is not competitive. The TV market is expected to decline from this year and demand outlook is uncertain.
Especially, Samsung Electronics and LG Electronics, the world`s top two TV makers, have not been able to do so. Both, Samsung Display and LG Display need a solution to the problem. Market researchers are expecting the TV market leadership to move from Korea to China this year. The TV market share gap between Korea and China has been narrowed to 10% for the first time, from 8.3% in the first quarter to 11.2% in the fourth quarter of last year. According to market researcher IHS Markit, Korean companies accounted for 33.7% of the global TV market in the first quarter of this year, which is down 0.7% from the previous quarter (34.4%), while Chinese companies recorded a 25.4% Point.
Experts analyze that it is a matter of time before the dominance of LCD market will be taken by China. They point out that OLED should be changed due to large technology gaps.
Meanwhile, Samsung Display closed its L7-1 LCD production facility last year and replaced it with OLED in the year. Instead, the company plans to increase the monthly production of 6G flexible OLED from the A3 facility to 30,000 sheets at the beginning of the year from 120,000 at the end of this year.
LG Display, on the other hand, is also planning to expand its OLED production capacity by mass-producing the E4-2, an 8G OLED facility, from the end of this month. However, the company is still weighing the 10.5G LCD and OLED for the P10 model to be decided next month. Some of them have a negative appraisal about producing LCDs in the P10, which will be operational two or three years later.
Professor Lee Shin-du at Seoul National University pointed out, "LCD technology is leveled and profitability is virtually unexplained. OLEDs should be all-in OLED as much as technology gap widen with Chinese companies."
By Park Seul Gee seul@
[ copyright ⓒ The Digitaltimes ]
According to industry and foreign sources on June 6, Chinese TV makers` domestic panel adoption rate has been raised from 54% in 2014 to 80% last year. Some analysts point out that this year the figure will rise to 85%, and sooner or later it will hit the full self-sufficiency age.
This is because Chinese display makers such as BOE and China Star are rapidly expanding their large LCD production facilities. BOE has started operation of the 8.5th generation LCD production facility `B10` in the first quarter of this year. The company plans to operate the 10.5 generation `B9` in the second half of next year. Meanwhile, China Star is expected to start an 11th generation LCD production plant from March 2019. The total number of 8.5, 10.5, and 11th generation LCD panel factories in China will reach 15 in 2019.
This move is expected to have a burden on the Korean display industry. It is because competition itself is not easy as the technology gap is narrowed as the price is not competitive. The TV market is expected to decline from this year and demand outlook is uncertain.
Especially, Samsung Electronics and LG Electronics, the world`s top two TV makers, have not been able to do so. Both, Samsung Display and LG Display need a solution to the problem. Market researchers are expecting the TV market leadership to move from Korea to China this year. The TV market share gap between Korea and China has been narrowed to 10% for the first time, from 8.3% in the first quarter to 11.2% in the fourth quarter of last year. According to market researcher IHS Markit, Korean companies accounted for 33.7% of the global TV market in the first quarter of this year, which is down 0.7% from the previous quarter (34.4%), while Chinese companies recorded a 25.4% Point.
Experts analyze that it is a matter of time before the dominance of LCD market will be taken by China. They point out that OLED should be changed due to large technology gaps.
Meanwhile, Samsung Display closed its L7-1 LCD production facility last year and replaced it with OLED in the year. Instead, the company plans to increase the monthly production of 6G flexible OLED from the A3 facility to 30,000 sheets at the beginning of the year from 120,000 at the end of this year.
LG Display, on the other hand, is also planning to expand its OLED production capacity by mass-producing the E4-2, an 8G OLED facility, from the end of this month. However, the company is still weighing the 10.5G LCD and OLED for the P10 model to be decided next month. Some of them have a negative appraisal about producing LCDs in the P10, which will be operational two or three years later.
Professor Lee Shin-du at Seoul National University pointed out, "LCD technology is leveled and profitability is virtually unexplained. OLEDs should be all-in OLED as much as technology gap widen with Chinese companies."
By Park Seul Gee seul@