Display manufacturers in China region (Taiwan and China) has increased TV panel shipments in the first half of this year, while Korean display makers has shown a decrease in shipments due to falling demand. Chinese TV makers are reducing their reliance on Korean TV makers and increasing their supply to Chinese TV makers, raising their market grip. Meanwhile, domestic display manufacturers, which have been lagging behind in price competitiveness in the Chinese market, are increasingly burdened by falling panel prices.

Taiwan`s AUO and Innolux, China`s China Star along with other China-based display industries saw their LCD TV and organic light-emitting diode (OLED) panels for TVs rise by 5% in the first half of this year in the first half of this year, according to market researcher IHS Markit and shipped 79.28 million units. Especially, China`s CEC pandas and China Star shipments increased by 61.3% and 22.4%, respectively, compared to the first half of last year.

Meanwhile, the Korean display industry, including LG Display and Samsung Display, shipped 44.636 million TV panels in the first half of this year, down 7% from the same period last year.

The difference in shipments between Korea and the Chinese display industry is attributable to the fact that Chinese TV makers have adopted a large number of display panels in China. China`s display companies focused their supply on Chinese TV makers, which are in increasing demand.

However, Korean TV makers such as Samsung Electronics and LG Electronics lowered their shipments this year. As a result, demand for panels fell sharply, and the shipments of Korean display makers had to shrink.

The top six TV makers in China, including Hyensen, TCL and Skyworth, are expected to increase their panel purchases by 17% and 14%, respectively, in the third and fourth quarters of this year, while Samsung Electronics and LG Electronics expect sales of 12% and 13% respectively.

In the Chinese TV market, China`s display industry is expanding its price competitiveness as a weapon. However, domestic display companies are in a situation of losing their major clients in overseas markets. In fact, LG Display`s sales portion in China declined 4.4% point to 64.6% from 69% in the second quarter of last year.

TV panel prices, which have been dropping since the second half of the year, also make the domestic display industry`s outlook uncertain. According to market researcher WitsView, the average LCD panel price for the month was USD 192, down about 4% from the previous month. Less than USD 200 is only 10 months.

An industry expert said, "Domestic display makers are having difficulties in shrinking TV shipments of Samsung and LG in the home market, and Chinese TV manufacturers are struggling in the large LCD panel market while using local display panels."


By Park Seul Gee seul@


[ copyright ⓒ The Digitaltimes ]