cut lcd panel made in china

Panel makers are cutting production by 16 percent on average from this month, Rong Chaoping, senior researcher at market research firm AVC Revo, told Yicai Global. Television panel makers are expected to ship 3.6 million less panels than last month.

Panel makers will reduce capacity by between 15 and 20 percent this month, said Wu Rongbing, chief analyst at Chinese semiconductor intelligence service Omdia.

TCL China Star intends to continue with its production cuts until September, while Beijing-based BOE and HKC Optoelectronics Technology have not yet decided how long they will reduce output, Rong said. None of the three companies responded when contacted by Yicai Global.

LCD TV display shipments from China’s five largest panel manufacturers accounted for 68.5 percent of the global market in April, a new high, and they were expected to exceed 70 percent this year, according to Omdia.

The global panel industry is expected to slash production by about 20 percent this year, according to Beijing-based Sigmaintell. It is the first time since 2013 that the worldwide sector has implemented such a large-scale and wide-ranging cut in manufacturing. But it should help to slow the fall in prices, Li said.

“Tumbling prices are squeezing profits,” Li said. “The price of a TV panel is now below cost price and that of some data panels is also below the manufacturing cost.”

“Panel makers are facing rising liquidity pressure and bigger losses as prices are now below cost price, so the display industry is likely to undergo another big reshuffle,” Rong said.

Excess supply will ease in the third quarter once output is cut, and prices will start to pick up and then flatten out, Li said. Demand for consumer electronic products is shrinking by far more than expected so it is too early to tell whether prices will rebound in the second half, she added.

Panel prices are likely to stop dropping this month or next as output falls, Wu said. Whether prices will start to pick up soon depends on when demand improves.

Since ultra wide LCD so ubiquitous lately , because it has matured into a totally developed, versatile product that has adapted to several different applications and environments. As you know the applications are constantly diversifying and that we are now seeing bar LCD displays with multi-touch displays, video walls, and interactive. Which aims to offer consumers a more fun, educational and enhanced customer experience that helps drive sales.

As you know the monitor with conventional aspect ratios have limitations, in locations where they’re restricted tall or physical space, like on elevators, buses, or within the transportation and medical markets. However,The bar LCD is relatively new technology allows a resized LCD tube made to suit almost any application, yet it retains all its original performance and feature solution.

Resizing bar LCD consists of LCD disassembly, physically cutting the glass to a replacement size, sealing the sides. The technology also can be utilized in a good range of applications where standard sizes aren’t suitable, generally where there are height or width restrictions. Which use this technology are highly cost-effective solution for these low and medium volume demands. At the same time,the incorporates a sensible auto-scaling function so when users play their original content, the size are automatically modified to suit cutting LCD super-wide resolution.

It appears too soon to say that Samsung Display and LG Display, the nation’s top display makers, will exit from the less lucrative LCD market amid a cutthroat competition with Chinese rivals with cheaper pricing.

Until a few years ago, the two firms had hinted at retiring from the old-school LCD business to focus on more advanced technologies such as upgraded LCDs or OLEDs to widen the gap with Chinese runner-ups.

But experts here say there has been a sign of change in the attitudes more recently, pointing out that their full shutdown of LCD operations ultimately would hinge on elevating profitability of their high-end push.

In 2020 alone, Samsung Display posted a deficit of more than 1 trillion won ($841.5 million) in its LCD business. But it has no other option but to continue production to meet the demand from its parent Samsung Electronics, the world’s largest TV maker.

The firm last year sold its LCD production facility in China to its Chinese rival TCL China Star Optoelectronics Technology, a key supplier to Samsung TVs. But the LCD line in Suzhou, China recently cut its panel supply almost in half, with Samsung’s display unit highly likely to be tasked with filling the void.

“(Samsung Electronics) have few choices but to contract with Samsung Display to make up for its LCD TV set capacity,” said Yi Choong-hoon, chief analyst at UBI Research.

This put Samsung Display‘s full exit plan in disarray. After the sell-off of the Chinese facility, the firm is also scaling down its LCD plant in Asan, South Chungcheong Province, to convert part of the facilities to its quantum-dot OLED lines to supply to set makers including Japanese firm Sony.

LG Display’s LCD business -- with production lines in Paju, Gyeonggi Province and Guangzhou, China -- is poised to generate 2.5 trillion won in operating profit for 2021, up fourfold from the previous year, according to Kim Jung-hwan, an analyst at Korea Investment & Securities, on Thursday.

This comes in sharp contrast with OLED TV earnings estimate. According to Kim, LG Display‘s OLED TV operations will post 152 billion won in operating loss, as its fourth-quarter forecast to generate 62 billion won income was dwarfed by 214 billion won losses for the previous three quarters. Since inception, LG’s OLED panel business has been in the red due to heavy spending.

Now, the question is whether the company is ready to be fully dedicated to next-generational OLED panels for premium TVs featuring self-lit pixels. Yi of UBI Research says it is too premature.

“A bigger penetration of OLED TVs to consumers is a prerequisitie for a conversion of (LG Display’s) existing LCD TV lines to OLED TV lines,” he said.

Analysts also said LG Display has already streamlined its LCD TV lines under a series of restructuring of LCD TV lines, including a conversion to lines for IT devices including mobile phones.

“(LG Display‘s) LCD TV fabs with low profit margin have completed a retreat in the first half of 2021,” said Kim Sun-woo of Meritz Securities. “LG is now capable of maintaining LCD capacity with a decent profit margin.”

This comes against the backdrop of industry projections that LCD TV panel prices continue to fall steadily over the course of the first quarter, and Chinese rivals are forecast to ramp up dominance in LCD market,

According to US-based market intelligence firm Display Supply Chain Consultants, Chinese firms’ LCD market share on a capacity basis are forecast to rise to 71 percent by 2025, from 53 percent in 2020, far outpacing Korea, Japan and Taiwan, as of June 2020.

Another estimate, released earlier this week, showed the price for LCD TV panels regardless of size -- ranging from 32- to 65-inch -- is projected to fall until March, giving up almost entire gains from July 2020 to July 2021 that is partly attributable to announced exits of Korean LCD panel makers.

The quarter-on-quarter price declines in the first quarter of 2022 to range between 10 percent and 23 percent and average 15 percent, with mid-sized panels taking the largest dip.

“Although the declines are slowing down in the first quarter, they are still severe for panel makers,” noted Robert O‘Brien, co-founder and principal analyst at DSCC.

China’s BOE, which rank first in the world in terms of LCD shipments this year with an 18.2 percent market share, has decided to reduce production. The company has started reducing production of the 10.5-generation LCD lines by 25 percent from July and production of other LCD lines by 10 percent. China Star Optoelectronics Technology (CSOT) and HKC have also lowered the operating rate of the 8.5-generation LCD lines by 10 percent and 20 percent, respectively.

In addition, the Chinese government will reduce support. Chinese display firms have been increasing the production of LCDs with subsidies from the local governments. However, the Chinese government has decided to change its support measures as the combined share of Chinese companies in the LCD market is about to surpass 50 percent and the competition for extension among Chinese companies has become fierce.

Accordingly, market experts said that Chinese display manufacturers are highly likely to give up on the excessive competition in plant expansion and additionally alleviate the oversupply. China’s share of the global LCD market is expected to increase from 29 percent in 2016 to 54 percent in 2020.

As Chinese companies, which have flooded the market with their products at a low price, are seeking to reduce the production of LCDs, the decline in price of LCD panels will gradually will be eased. The price of 32-inch and 55-inch LCD TV panels stood at US$33 (39,300 won) and US$106 (126,340 won) as of August, down 20 percent and 26 percent, respectively, from the beginning of the year, according to global market research firm IHS Markit.

Staring with the reduction of LCD production amid sluggish sales, the South Korean display industry is seeking to improve its constitution by converting to organic light emitting diode (OLED) business.

Samsung Display will stop producing LCD panels by the end of the year. The display maker currently runs two LCD production lines in South Korea and two in China, according to Reuters. Samsung tells The Verge that the decision will accelerate the company’s move towards quantum dot displays, while ZDNetreports that its future quantum dot TVs will use OLED rather than LCD panels.

The decision comes as LCD panel prices are said to be falling worldwide. Last year, Nikkei reported that Chinese competitors are ramping up production of LCD screens, even as demand for TVs weakens globally. Samsung Display isn’t the only manufacturer to have closed down LCD production lines. LG Display announced it would be ending LCD production in South Korea by the end of the 2020 as well.

Last October Samsung Display announced a five-year 13.1 trillion won (around $10.7 billion) investment in quantum dot technology for its upcoming TVs, as it shifts production away from LCDs. However, Samsung’s existing quantum dot or QLED TVs still use LCD panels behind their quantum dot layer. Samsung is also working on developing self-emissive quantum-dot diodes, which would remove the need for a separate layer.

Samsung’s investment in OLED TVs has also been reported by The Elec. The company is no stranger to OLED technology for handhelds, but it exited the large OLED panel market half a decade ago, allowing rival LG Display to dominate ever since.

Although Samsung Display says that it will be able to continue supplying its existing LCD orders through the end of the year, there are questions about what Samsung Electronics, the largest TV manufacturer in the world, will use in its LCD TVs going forward. Samsung told The Vergethat it does not expect the shutdown to affect its LCD-based QLED TV lineup. So for the near-term, nothing changes.

One alternative is that Samsung buys its LCD panels from suppliers like TCL-owned CSOT and AUO, which already supply panels for Samsung TVs. Last year The Elec reported that Samsung could close all its South Korean LCD production lines, and make up the difference with panels bought from Chinese manufacturers like CSOT, which Samsung Display has invested in.

In this article, we are looking at the benefits of looking for Chinese TFT LCD manufacturers. Instead of resorting to other manufacturing means, opting for the Chinese is a much wiser and lucrative choice. If you are looking for Chinese LCD manufacturers, you should start with STONE Tech.

Handbags, wallets, phone cases, and other similar items have become the favorites of wholesalers and bulk buyers. These products are directly sold to end consumers. However, the fascinating thing about the Chinese production and manufacturing business is that it does not only cover the end-consumer products. Rather, you can also acquire raw and basic materials needed for the further manufacturing of goods and products. One such product is LCD displays.

LCD displays have become something of a necessity in today’s world of tech advancement. Many things in our daily life have been automated, and are operated using an interactive user interface. For these kinds of machines and gadgets, LCD displays are typically necessary.

In this article, we are looking at the benefits of looking for Chinese LCD manufacturers. Instead of resorting to other manufacturing means, opting for the Chinese is a much wiser and lucrative choice. If you are looking for Chinese LCD manufacturers, you should start with Stoneitech.com.

STONE Tech is an LCD manufacturer located in Beijing, China. It was founded back in 2010, and it has been developing TFT LCD display modules ever since. These modules can be used for a variety of different machines including electric equipment, precision instruments, and civil electronics etcetera.

The same applies to LCD displays. When you save up on costs when buying LCD displays, you can set a lower price for the whole machine or gadget that you are producing.

When it comes to LCD modules, the orders are not received by the hundreds or thousands as is the case with other smaller products such as handbags and wallets etcetera. One module can cost around $250, and it is for this reason that the dynamics are a little different with this business. That is why STONE offers single pieces for sale as well as multiple pieces. This encourages smaller businesses to make their purchases since they can easily purchase as many modules as they like. As long as you meet the limit stated by the supplier, you are good to go.

Typically, when you are paying less, you can have the expectation that the quality might not be good or the time taken may be too long. However, when you are buying from the Chinese, you don’t have to face any of these problems. While you are paying less, you can get satisfactory quality and even the production time is cut down.

The factories in China have more machines and workers working simultaneously. This means that you can get bigger orders more quickly. For example, if you are getting 10 units from a domestic supplier in 4 days, you will be able to get 12 units from a Chinese supplier in just 3 days. That means that the production rate is increased, and the time taken is also cut short. This is merely an example to show that both aspects of production are enhanced when you do business with the Chinese.

In the case of LCD modules, this benefit relates to a reselling business. For example, if you are planning on buying some modules to use in your machines etcetera, then there is not a very suitable opportunity for you to expand. If you want to start a business in another country, you will have to open a manufacturing unit there so that your products can be produced and then get sold. Or, you will have to transport your final products to the other country in order to run your business.

However, if you are buying the LCD modules to resale at a profit, you can use the Chinese markets to grow your business. You can buy the modules at a reduced price and then sell them at a profit in a different area or city where the people will be willing to pay more.

Now that we have seen the benefits of choosing Chinese manufacturers for LCD modules, let us narrow it down a bit and look at why you should choose STONE specifically.

With STONE, you get the option of buying a range of different-sized modules. If your business deals in making different electronics and machines that require panels of different sizes, you don’t have to look at multiple suppliers to fulfill your need. You could be making some products that require 3.5-inch panels, while some of your machines could be needing 15.1-inch modules. Instead of taking the trouble to go to different suppliers, you can enjoy an all-in-one experience from STONE.

One of the main things that you have to look at in any supplier is the level of reliability and trust. This is usually determined by the level of experience and the time that the supplier has spent in the market. STONE was founded in 2010 and has been producing LCD modules for the past 10 years.

If you are looking to buy LCD modules in bulk, look no further than the Middle Kingdom. China has become the hub of mass manufacturing and is the favorite spot for wholesalers and business owners.

In case you need some convincing about buying from the Chinese, we have compiled a list of benefits that you can enjoy when looking for TFT LCD manufacturers in China.

Attendees visit the booth of TV panel maker Shenzhen China Star Optoelectronics Technology during an international exhibition in Shanghai on July 11, 2019. [Photo by Lyu Liang/For China Daily]

Chinese companies have gained a competitive edge in the large-screen display industry and the exit of South Korean counterparts such as Samsung Electronics and LG Display from the liquid crystal display market will bring opportunities for China"s panel makers despite the challenges posed by the COVID-19 pandemic.

Market research firm Sigmaintell said BOE Technology Group Co Ltd－a leading Chinese supplier of display products and solutions－became the world"s largest shipper of LCD TV panels for the first time in 2019.

The Beijing-based company shipped 53.3 million units of LCD panels in 2019, with production capacity increasing by more than 20 percent on a yearly basis.

The consultancy said the LCD TV panel production area of Chinese manufacturers will account for more than 50 percent of the global total this year, surpassing South Korean competitors who are accelerating the shutdown of large-sized LCD panel production capacity due to competition from Chinese manufacturers.

It estimated the production capacity of large-sized LCD panels will continue to increase in China over the next three years. In addition, global LCD TV panel shipments stood at 283 million pieces last year, a slight decrease of 0.2 percent year-on-year. Meanwhile, the shipment area was 160 million square meters, an increase of 6.3 percent year-on-year.

"Chinese companies have gained an upper hand in large-screen LCD displays. Samsung and LG"s decision to exit from the LCD sector means Chinese panel makers will take a dominant position in this field," said Li Dongsheng, founder and chairman of Chinese tech giant TCL Technology Group Corp.

Li said South Korean firms will focus on organic LED screens and quantum dot LED displays, while Chinese TV panel makers are catching up at a rapid pace.

Data consultancy Digitimes Research said it comes as little surprise that Samsung has opted to withdraw from the LCD panel sector as its LCD business was losing money in every quarter of 2019 due to challenges from Chinese competitors.

BOE said its Gen 10.5 TFTLCD production line achieved mass production in Hefei, Anhui province, in March 2018. The plant mainly produces high-definition LCD screens of 65 inches and above. With a total investment of 46 billion yuan ($6.5 billion), the company"s second Gen 10.5 TFT-LCD production line launched operations in Wuhan, Hubei province, in December.

The Gen 11 TFT-LCD and active-matrix OLED production line of Shenzhen China Star Optoelectronics Technology, a subsidiary of TCL, officially entered operations in November 2018, producing 43-inch, 65-inch and 75-inch LCD screens.

Chen Lijuan, an analyst at Sigmaintell, said panel manufacturers should not just invest in production lines, but also pay more attention to the establishment of the whole supply chain, including raw materials, equipment and technology.

Bian Zheng, deputy director of research at AVC Revo, a unit of market consultancy firm AVC, said China will have a 51 percent market share in global TV shipments in 2020, while South Korea will have 25 percent, adding that large-screen TV panels will bolster healthy development of the industry.

Bian said the OLED and QLED will be the next-generation flat-panel display technologies to be in the spotlight. LG Display is currently the world"s only supplier of large-screen OLED TV panels.

OLED is a relatively new technology and part of recent display innovation. It has a fast response rate, wide viewing angles, super high-contrast images and richer colors. It is much thinner and can be made flexible, compared with traditional LCD display panels.

The escalating coronavirus crisis is impacting production at display panel factories located in the semi-quarantined city of Wuhan, China, spurring a significant near-term reduction in the global supply of panels used in liquid crystal display televisions (LCDs) and other products.

The five factories in the city producing liquid crystal displays (LCDs) and organic light-emitting diode (OLED) panels will experience near-term slowdowns in production compared to expected levels, according to IHS Markit technology research, now a part of Informa Tech.

With the situation evolving quickly, IHS Markit technology research is still assessing the magnitude of the supply shortfall on multiple display types and markets. However, leading Chinese panel makers stated they believe that total capacity utilization for all LCD fabs in the country could fall by at least 10 percent and perhaps by more than 20 percent during the month of February.

With China expected to own 55 percent of global display manufacturing capacity in 2020, the immediate impact of the production reduction has been a worldwide decrease in availability and an increase in pricing for LCD-TV panels. This has resulted in turmoil throughout the display supply chain as suppliers and purchasers alike scramble to adjust to swiftly changing market conditions.

The leading Chinese suppliers of LCD panels for TVs, notebook PCs and PC monitors now are planning to raise panel prices more aggressively. For example, the price for an open-cell LCD-TV panel was originally expected to rise by $1 or $2 per month in February. However, the actual increase may be $3 to $5 for the month.

Beyond the immediate production impact at these facilities, the coronavirus is also likely to trigger delays in the ramp-up of manufacturing at new display fabs during the first half of 2020. This will reduce overall panel availability during the next few months. It also could result in further panel supply tightness as TV display buyers hasten the pace of their panel purchases to build stockpiles for future shortfalls.

While major panel makers are rightly concerned about the coronavirus’s impact on consumer sales, demand for their products from TV makers has actually increased. TV makers are pulling in their panel demand and sometimes double-booking orders to shore up their inventories. The panel maker indicated that the demand surge for orders delivered in February is as large as 10 percent above the previous demand forecast.

The labor shortage encountered by fabs in Wuhan is partly the result of the Chinese government’s move to extend the Lunar New Year holiday by three days, with the last day now scheduled for Sunday, February 2. The extension is designed to reduce travel and cut down on public gatherings to contain the spread of the disease.

LCD panel makers outsource much of the production of such modules. However, production at several key third-party module suppliers has now ceased, impacting panel production severely throughout the country. Key module supplier SkyTech is sharply reducing production until mid-February.

Panel makers maintain their own captive LCD module factories. However, these operations are also facing production bottlenecks amid the coronavirus crisis.

BEIJING -- China is facing a serious glut of large LCD panels as manufacturers keep boosting output capacity despite the lackluster market, a trend likely to have far-reaching repercussions for related businesses in East Asia.

Local LCD panel producer BOE, now operating a cutting-edge plant in Beijing that can make panels using 8.5-generation (2,200-by-2,500mm) glass substrates, is moving to open similar facilities in Hefei, Anhui Province, and Chongqing, Sichuan Province, by summer 2015.

In recent time, China domestic companies like BOE have overtaken LCD manufacturers from Korea and Japan. For the first three quarters of 2020, China LCD companies shipped 97.01 million square meters TFT LCD. And China"s LCD display manufacturers expect to grab 70% global LCD panel shipments very soon.

BOE started LCD manufacturing in 1994, and has grown into the largest LCD manufacturers in the world. Who has the 1st generation 10.5 TFT LCD production line. BOE"s LCD products are widely used in areas like TV, monitor, mobile phone, laptop computer etc.

TianMa Microelectronics is a professional LCD and LCM manufacturer. The company owns generation 4.5 TFT LCD production lines, mainly focuses on making medium to small size LCD product. TianMa works on consult, design and manufacturing of LCD display. Its LCDs are used in medical, instrument, telecommunication and auto industries.

TCL CSOT (TCL China Star Optoelectronics Technology Co., Ltd), established in November, 2009. TCL has six LCD panel production lines commissioned, providing panels and modules for TV and mobile products. The products range from large, small & medium display panel and touch modules.

Established in 1996, Topway is a high-tech enterprise specializing in the design and manufacturing of industrial LCD module. Topway"s TFT LCD displays are known worldwide for their flexible use, reliable quality and reliable support. More than 20 years expertise coupled with longevity of LCD modules make Topway a trustworthy partner for decades. CMRC (market research institution belonged to Statistics China before) named Topway one of the top 10 LCD manufactures in China.

The Company engages in the R&D, manufacturing, and sale of LCD panels. It offers LCD panels for notebook computers, desktop computer monitors, LCD TV sets, vehicle-mounted IPC, consumer electronics products, mobile devices, tablet PCs, desktop PCs, and industrial displays.