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Global LCD Panel Prices Rise, China's Panel Companies Welcome the Moment of Highlight

2020.09.30

Market research firm TrendForce pointed out that global TV panel prices have risen by 30% in the third quarter, and it is expected that the tight supply situation in the fourth quarter will not ease, and LCD panel prices will rise further, which means that Chinese panel companies, which have dominated the LCD panel, are expected to achieve substantial growth in performance.

 

TrendForce thinks Samsung LCD panel enterprise has given up because of the large South Korea two LCD panel production (its Suzhou LCD panel production line sold to TCL Huaxing), reduced LGD LCD panel production capacity, China's LCD panel enterprises while expanding production capacity is limited by the industrial chain, lead to the LCD panel capacity failed to follow the demand of the market expand rapidly.

The second is the increase in global demand for LCD panels, which is caused by two factors. On the one hand, due to the impact of the epidemic, countries adopted home quarantine measures, which promoted the growth of TV demand. However, due to the impact of the epidemic, people's income fell and turned to more affordable LCD TV.

 

On the other hand, the TV popularity of Europe, the United States and China has been quite high, this part of consumers tend to choose a larger size of LCD TV when buying LCD TV, in which the Chinese market more than 55 inches TV has become the mainstream, which also leads to the increase in the demand for LCD panel.

The failure to increase supply quickly and demand for LCD panels has led to a global supply crunch, making them a rare example of an industry that has bucked the trend this year.

 

LCD panel prices, for China's two big LCD panel is good news, this will be China panel enterprise second harvest bumper profits from the LCD market, currently in China, TCL BOE Huaxing has become the world's first two big LCD panel production enterprises, combined with other Chinese panel enterprises, China's share of global LCD panel production market share of more than fifty percent.

 

Rising global LCD prices helped Chinese panel companies reap huge profits in 2017, with BOE's net profit more than quadrupling that year and TCL Huaxing's performance also rising sharply, the first fruits of victory for a Chinese panel company after years of toil.

 

China's panel industry started in 2003, when BOE acquired the LCD panel production technology by acquiring a non-advanced 3.5 generation LCD panel production line from Hyundai. However, BOE suffered continuous losses due to the backward technology. It was not until 2009, when BOE was preparing for the preparation of 8.5 generation line that TCL Huaxing put into production the first 8.5 generation line, thus China's LCD production technology finally caught up with the world's advanced level.

 

LCD panel prices have dropped since the trend, however, lead to BOE and TCL Huaxing continue to suffer, but they did not stop, then confirm 10.5/11 of the world's most advanced generation line, panel companies in terms of production capacity beyond the South Korea, in the face of China's LCD panel enterprise accelerating expansion capacity, south Korean companies recoiled, LCD panel prices in turn in 2017, and Chinese panel companies also have profit in that year.

 

LCD panel industry is made in China to upgrade the epitome of the development of, in the past China has been given priority to with processing trade, suffering from a very low profit margins, and once the technology progress was made in China, similar products prices fell rapidly, but the liquid crystal panel industry's success inspired the as long as you stick to see the dawn after all.

 

LCD panel industry is made in China to upgrade the epitome of the development, in the past China has been given priority to with processing trade, suffering from a very low profit margins, and once the technology progress was made in China, similar products prices fell rapidly, but the liquid crystal panel industry's success inspired as long as you stick to see the dawn after all.