Excess! In 2 To 3 Years, The Panel Plant Will Merge Or Restructure Or Shut Down The Old Factory
May 04, 2018
According to Xie Qinyi, senior research director of IHS Markit, 2017 is the best year for panel makers in nearly 10 years, but 2018 is the biggest pressure for panel makers. In the next 2 to 3 years, it is bound to be resolved through merger, reorganization, or closure of plants. problem.
Xie Qinyi pointed out that the oversupply of panel makers this year may result in a loss of pressure in the second quarter; the future panel industry can only be improved through mergers and reorganizations, or similar to Samsung's previous closure of the 7th-generation old factory.
He explained that although oversupply, in order to avoid the land plant to seize the market share, Taiwan factory would rather not reduce capacity utilization, there are two main reasons, first, the production line depreciation in the financial report is almost completed, the production cost is low; It is to maintain capacity utilization to reduce component costs.
He stressed that China's mainland panel makers are actively expanding their production capacity. Not only LCD panels, but also AMOLED panel plants have been simultaneously expanded. The panel production capacity is continuously increasing. It is expected to become the world's largest panel production capacity, with a market share of 55% in 2023 or 2024. .
He said that the panel technology is leading in South Korea, but China's production capacity has increased, especially this year's flexible AMOED panel demand is not as expected, so South Korea's Samsung, Le Jin display slowdown in AMOLED panel investment, even though Korea will continue to lead the AMOLED panel situation, but The narrowing gap with China is still expected.
He expects that in 2022 China will have 19 panel makers producing large-size panels and 20 panel makers producing medium- and small-sized panels. This year's focus is on the BOE 10.5 Generation Plant and the two 8.6-generation plants of the China Power Group.
In the face of competition in mainland China, he bluntly stated that the 65-inch TVs assembled by the TV brand TCL in mainland China sell for US$628 each, but Samsung’s 65-inch TVs sell US at US$1,100, which is more than US$400, and TVs are subject to price cuts. The panel also faces downward pressure on prices.
