Next Year's Display Panel Production Capacity In China Is Expected To Be Number One! Need To Be Vigilant And Disorderly Development Leads To Vicious Competition

China is the largest producer of display panel manufacturing in the world. According to the data from the Liquid Crystal Branch of the China Optics and Optoelectronics Industry Association, in 2017, the LCD panel in mainland China ranks first in the world in terms of revenue and shipping area.

Show production capacity

China is a manufacturing powerhouse. How to change from a big country to a strong country, and to take the lead and run and even have the opportunity to take the lead in the future, is now a crucial moment for a change. On April 10, the "2018 China Display International Industry Conference" co-organized by the Ministry of Industry and Information Technology and Shenzhen Municipal People's Government, China Electronic Video Industry Association, China Electronic Equipment Corporation and Shenzhen Flat Panel Display Industry Association, was disclosed. All kinds of changes in information.

The reporter learned that in the past year, several panel lines have been put into operation or started construction in China. In particular, the 10.5/11 generation panel line and several 6th generation AMOLED production lines have started construction, giving China the status of the largest production area of the display panel. Getting closer. In 2018, China will also have a number of OLED panel lines put into production or expansion. It is expected that OLED investment in the next 3-5 years can reach 30 billion to 50 billion US dollars. Manufacturers such as BOE, Huaxing Optoelectronics, Visionox, Tianma and other manufacturers have also come out with flexible screens, full screens, and special-shaped screens. Domestic high-end screens are making rapid progress. China's panel production capacity is expected to become the world's first in 2019.

While the display panel continues to make progress, China's upstream materials include liquid crystal materials, mask plates, substrate glass, target materials, and polarizers. It is also accelerating the pace of construction and continues to make breakthroughs. Shipments continue to grow. In the end market, with the intensification of market competition and the advancement of multi-technology, product innovation has also emerged in an endless stream, including technologies such as quantum dot backlighting, 4K/8K TV, full-screen, AI, etc., and VR/AR technology. Wearable devices have emerged.

China's display industry has seen rapid development, but there are still three cruxes: First, the industry chain supporting capacity is weak. For example, exposure equipment used in TFT-LCD panels, evaporation equipment used in AMOLED panel production, exposure equipment, etc., are almost dependent on imports. At present, the 10.5-generation line glass substrate packages already built or under construction in mainland China are all dependent on foreign manufacturers. Key materials and core equipment have become the bottleneck restricting the development of China's new display industry. Second, the industrial structure needs to be adjusted. Although the proportion of China's mainland shipments of panel shipments has continuously increased, the added value of products remains low. Third, there is a potential risk of blind investment.

Welcome the opportunity of change

China has always hoped to accelerate the development of the panel display industry from the big to the strong. Now there is an opportunity for change, because a new trend has come.

We are in an era of dramatic changes. Huawei’s mobile phone president He Gang believes that we need new ways for human-computer interaction. The interaction mode in the Internet era is the mouse and keyboard. The interaction mode in the mobile Internet era is the screen and touch, and the Internet of Everything IOT. In the era, human-computer interactions are natural speech interactions, natural gesture interactions, brainwave interactions, and immersive interactions such as VR and AR.

IOT requires more intelligent ports, which brings more possibilities for the display industry to change. “Because of the interconnectedness of everything, ubiquitous and smarter demands, we have put forward more challenges to ports. The past ports are just information displays. The ports of the Internet of Everything implement human-computer interaction and require smarter ports to display products as The indispensable component of the port has ushered in new opportunities for development, said Liu Xiaodong, president of BOE Group. The IOT era means that ports are ubiquitous. According to statistics, the number of ports in the world in 2017 will be 20 billion. By 2025, the total number of ports in the world will be 70 billion. The average number of newly added ports per minute is 5,000. Such changes in demand and huge markets provide power and possibilities for showing the industry's changes.

5G commercial is also a big opportunity for future changes. Peng Xuhui, vice president of Ma Microelectronics Group, said that 5G means that the speed and quality of network transmission have been greatly improved, making the mobility of various IOT terminals possible. Mobile has put forward higher requirements for the display's foldability and flexibility. In the automotive field, the high-speed development of smart driving also imposes higher requirements on high-definition, lighter, thinner and heavier displays.

The display screen is more and more imaginary in the future. Yan Ruyuan, executive vice president of Visionox, believes that in the future, we will enter the “ubiquitous screen” era, and the screen will change from a simple information output window to a key to realizing the interconnection of everything and redefining the relationship between people and things and things. Only the service life, but also to change the way of life, its development will be "familiar" - "surprise" - "above the imagination" direction continues to evolve.

The display of the future will not only be what we see today, but there will be more changes. Last year, Visionox held a future show creative design contest. There are many ideas beyond imagination, such as scroll-type notebook computers, vehicle transparent head-up display. The ubiquitous display will present a variety of features in the future, and the display will integrate multiple interactive functions, even including direct display sound.

Change the way

Changes in demand will inevitably bring about changes in innovative ways.

One-stop integrated innovation has become a trend. Wang Xianyu, chairman of Star Technology, said that 5G will be commercial next year, 5G mobile phone trend is a big screen, curved surface, wireless charging, wireless charging and 5G networks require the backplane can not use metal, because the metal will affect the transmission, which means positive, The use of glass on the back will become the mainstream of 5G mobile phones. How does a hyperbolic glass form? It looks simple but it is not easy to achieve. If the structural parts and glass are selected from different companies, the result is that the quality is difficult to control. The best way is to integrate plastics, glass, metals, etc. in one factory to realize the integration of metal, plastic and glass. In addition to mobile phones, laptops and other integrated solutions to provide integration, Star Technology is currently working with Audi, Mercedes-Benz and other auto companies, and for Geely and other auto companies to create integrated touch display solutions.

Extending the industrial chain service has become a new choice. According to Liu Xiaodong, president of BOE Group, the company is transforming into a smart port and a professional-service IoT company, targeting BOE’s mainstream markets, including mobile phones, tablets, notebooks, monitors, and TVs, and adopting a strategy to continuously improve its market position; Sub-market applications, including industrial control, medical care and so on. At the same time, technologies such as optoelectronics, sensors, molecular antennas, fingerprint recognition, and microfluidics are being developed; in addition to providing more services for extending the industrial chain, such as BOE’s recently launched digital art trading platform and the National Art Museum of China, etc. A cooperation was reached to allow users to enjoy the works of art that the museum can see through the mobile phone at home.

Cross-border integration brings new variables. Yan Ruyuan, executive vice president of Viscano, said, “We now see a touch screen that combines the display and the keyboard. Fingerprint identification under the screen is to integrate the fingerprint chip and display under the screen, and some companies propose full-screen sound. The new idea is to integrate sound components into the display and the display will be heard directly. The next step will be bolder ideas such as the integration of screens and cameras."

As a 350-year-old development company, Germany’s Merck now also hopes to cross the border. When talking about future display technologies and creating greater value, Li Junlong, general manager of Merck Optoelectronics (Shanghai) Co., Ltd. disclosed that they now hope that Cooperate with the construction industry to convert the exterior window glass into panels to reduce energy consumption and meet the requirements of smart buildings.

To do a forward-looking layout. In fact, more breakthroughs must be made in the basic disciplines in order to achieve greater breakthroughs. Yan Ruyuan stated that if technology is to lead the world, it needs to lay out the technology. This is not an easy task. She uses OLED and LCD display as an example. The production cycle of these technologies is very long, and the technical research phase needs 8 years. It takes 3-5 years for the research phase and 1-2 years for mass production development. If we want to make a determination in the future to achieve leadership, we must dare to sit on the bench. We must not only pay attention to engineering issues and industrialization issues, but also focus on basic disciplines to achieve a breakthrough. In addition, a funnel-based R&D system must be built on the R&D system, from a variety of technologies to the search for industry explosions to the formation of a production technology to create a funnel screening process.

Establish an open platform for upstream and downstream collaborative innovation. The reason why the Korean display industry has developed well is not only the backbone enterprises such as Samsung and LG, but also because there are a number of innovative companies around Samsung and LG that provide them with raw materials for the upstream industry, South Korea has been able to thrive in the flat panel display industry. . Display panel companies as intermediate vendors should open up R&D platforms to attract upstream raw material companies and downstream companies to conduct joint research and development, bring more technological breakthroughs together and create a better user experience.

Chinese upstream and downstream companies should join together to sing a chorus. Bai Weimin, executive vice president of the China Electronics Video Industry Association, said that in recent years, the key golden period for the development of the color TV industry, 3-5 years of time is critical to our development, the future display technology will continue to develop, we are the upstream and downstream Must join together to sing a chorus, including materials, panels, complete machines, programs, software, and so on.

Liu Xiaodong also appealed that China is currently the world's largest production base for display panels, rewriting the global industrial landscape and competition. However, disorderly development can easily lead to vicious competition and undermine the hard-won development results of the display industry. Therefore, it is recommended that the industry should invest rationally, and the government authorities should promptly release relevant industry information and data, establish an early warning mechanism for information, and prevent investment overheating and decision-making. Mistakes and other issues.