Nternational manufacturers have withdrawn from the LCD production line, leaving little time for China

After years of development, the innovative display technology of color TVs has developed vigorously. Quantum dots, OLEDs, lasers, Micro/Mini LEDs, and other display technologies have emerged in an endless stream, but the current mainstream market product is still LCD. Although the shipment volume is still LCD, more and more international big-name panel manufacturers choose to withdraw from the LCD market. Why?

In June this year, it was reported that Mitsubishi Electric announced that its subsidiary Melco Display Technology (MDTI) will stop producing TFT-LCD liquid crystal modules by June 2022, due to changes in the operating environment. The company will use MDTI's operating resources Move from LCD business to business with growth potential, such as motors, for further growth and development.

This is another panel giant after Samsung, LG and Panasonic announced that they would abandon the LCD panel business.

In March this year, the market research organization CINNO Research released a report saying that affected by the new coronary pneumonia epidemic, SDC (Samsung Display) is accelerating the closure of LCD production capacity. The shutdown plan may be advanced to the fourth quarter of this year. Or it has been invested by Huaxing Optoelectronics and Samsung has chosen to withdraw from the LCD competition.

Since June last year, LGD has discontinued some of the 7.5th and 8.5th generation LCD panel production lines. In January this year, the relevant person in charge of LG Display has revealed that it will be closed in South Korea before the end of the year for production. TV LCD panel factory. In addition, Panasonic also withdrew from the LCD business and will end production in 2021.

Why do so many big-name companies launch the LCD panel market one after another? This has nothing to do with the rise of China's LCD panels and the fight over price wars. A group of Chinese manufacturers represented by BOE, Huaxing Optoelectronics, Rainbow Optoelectronics, CLP Panda, etc. launched a price war on a global scale and made their products quickly occupy the market through price advantages. The LCD panel market, which had been marginally low or even losing money, was further aggravated. Japanese and South Korean brands all withdrew from the competition.

The rise of domestic color TV manufacturers has put pressure on Japanese and Korean brands, but they have not given up on the LCD market. Although the LCD production line was closed, Samsung, LG, and other brands did not stop the output of LCD products. The liquid crystal product panels of these head brands came from domestic panel manufacturers. They chose to import from China and used the brand advantages to make the final game with domestic brands.

According to a research report by Media (formerly IHS), Chinese mainland panel manufacturers have a 52.9% global share of large-size (more than 9-inch) LCD panel shipments, while South Korean and Taiwanese manufacturers have 24.8% and 21.9%, respectively. According to CINNO Research data-in terms of shipments, panel manufacturers in mainland China accounted for 59.4% of total shipments in February 2020, close to 60%. In the near future, the domestic LCD panel market will occupy most of the global share.

Although the market share of domestic LCD panels continues to expand, domestic panel manufacturers are also facing downward pressure on prices and the replacement of innovative display technologies. At present, although Samsung has abandoned LCD panels, Samsung has been investing in research and development in the fields of QLED and Micro LED, especially in the field of quantum dots. Samsung is in the global leading position in terms of technology and sales; let alone LG, it is backed LGD is the only company in the field of OLED and has the right to speak for global OLED panels;

Weak LCD panel profits have become a consensus, and it is also indisputable that innovative display technologies will soon replace LCD displays. Therefore, domestic LCD panels should also pay close attention to the development and manufacture of innovative display technologies while expanding their territory. After years of catching up in display technology, the gap with the world's leading brands has gradually narrowed. It is also in the first rank in the research and development of next-generation innovative display technology. It is expected that domestic brands will stand at the peak in the next period of display technology change.