In 2020, the output value of Taiwan's panel industry ended two consecutive years of negative growth, rising 0.3% against the trend

In 2020, the output value of the panel industry ended for two consecutive years of negative growth. Benefiting from IT、TV panel demand, the output value of the panel industry ended its negative growth for two consecutive years in 2020, rising 0.3 percent against the trend, with an annual output value of 72.75 billion yuan. According to statistics from the Ministry of Economic Affairs and Statistics, the annual output value was only 72.54 billion yuan, a new low of nearly 14 years, minus 16.9 percent a year.

According to the Ministry of Economic Affairs and Statistics, the global impact of the new crown pneumonia epidemic in 2020, the first half of the panel output value is still negative growth, but the epidemic led to strong demand for home office, distance teaching and other strong IT panel production, plus residential economic fermentation, TV brand factories actively pull goods, as well as the expansion of high-order production capacity, resulting in an annual increase of 11.2 percent in the second half of the year, the highest increase since 2013, the overall 2020 panel industry output value rose 0.3 percent against the trend, ending two consecutive years of negative growth.

Further analysis by the Ministry of Economic Affairs and Statistics found that the growth of large panels (10 inches and above) was the main source of contribution to the panel industry, accounting for 58.3 percent of the overall panel industry, mainly benefiting from the heating up of residential economy and long-distance business opportunities. Large-size panel output value in the second half of the year turned positive growth 25.5, resulting in 2020 output value of 42.4 billion yuan, an annual increase of 4.6, the main contribution to the growth of the panel industry.

However, small and medium size panels (less than 10 inches), due to the decline in the mobile phone panel market and the United States ban on land technology factory orders, caused an increase in the second half of the year, the annual output value of 12.5%; LCD panel components, color filters are mostly self-produced, with panel demand increased by 1.1%, LCD glass substrates due to overcapacity in some manufacturers, the annual output value decreased 2.9%; other LCD panels and components, due to backlight modules, light guide panels, LCD components export market decline, annual output value decreased by 11.8%.

Taiwan's panel industry is dominated by export markets. In 2020, Taiwan's liquid crystal panel (HS9013) exported $6.92 billion, an annual increase of 5.3 percent. However, because most of the latter panel modules are assembled in Chinese mainland, exports are dominated by Chinese mainland and Hong Kong, accounting for 92.5 percent, Japan 2.0 percent, the United States, Germany and South Korea less than 2 percent.

Comparing the LCD panel exports of major competitors, according to data from the Ministry of Economic Affairs and Statistics, Taiwan has ranked first in Chinese mainland export value in recent years, with some manufacturers expanding high-order production capacity and South Korea closing LCD panel factories one after another. South Korea jumped to second place in 2020 and South Korea third. However, in 2020, Taiwan's LCD panel export growth was better than that of the major competitive countries, with an annual growth rate of 5.3 per cent and the only positive growth rate, Chinese mainland 4.7 per cent per year, South Korea 5.6 per cent per year and Japan 6.2 per cent per year.