10 inch lcd panel factory made in china

Introduction: Global LCD industry shift and automotive intelligence together to promote the rapid development of China’s LCD panel industry, which will bring a continuous increase in demand for backlight modules, China’s backlight module industry has greater potential for development.

LCD panel backlight module consists of a backlight light source, light guide, optical film, and a plastic frame, which is an important component of LCD display panel. As the backlight module has technology-intensive and labor-intensive attributes, with abundant high-skilled labor advantage China is attracting the global LCD panel industry to the domestic rapid transfer.

From LCD application to the present, the global LCD panel industry capacity transfer has gone through three periods, 2000 Japan dominated the global LCD industry; 2000 – 2010, Japan’s production capacity to South Korea and Taiwan; 2010 to the present, Japanese manufacturers gradually withdraw from the LCD panel industry, production capacity began to transfer to mainland China, so far, mainland China LCD production capacity has occupied the global half of the world.

In recent years, South Korea’s Samsung and LG display will shift their business focus to OLED, and will gradually shut down their LCD production lines and withdraw from the LCD panel industry; at the time of South Korean manufacturers’ withdrawal, domestic enterprises are stepping up new construction to expand LCD production capacity.

BOE, Huaxing photoelectric, Huike, CEC in 2020 – 2021, a total of eight 7 generation LCD production lines completed and put into operation, and domestic panel manufacturers have further expansion plans, the next few years domestic LCD production capacity will continue to increase.

LCD panel manufacturers tend to choose the nearby supporting module suppliers for the safety of the key component supply chain and cost reduction considerations. LCD panel production capacity transfer to China will bring opportunities to domestic backlight module manufacturers and drive the development of the domestic backlight module industry.

The future of the car will pay more attention to the human driving experience, to the intelligent development, which will bring the increasing demand for car display. On the one hand, the number of car displays gradually increased, for example, the instrument panel, rearview mirror, central control platform more to display the way, the passenger and rear position with entertainment display. On the other hand, the car display is constantly to a large screen, multi-screen development, especially in high-end models, the large display has become standard, for example, Tesla Model S screen size of 17 inches, Mercedes-Benz A-class car configuration of two 10.5-inch display.

According to the terminal application size, backlight module can be divided into large, medium, and small size, of which small size backlight module is mainly used in smartphones, wearable devices, and other terminals, the medium size used in notebook computers, tablet PCs, car screens and other terminals, the large size is mainly used in LCD TV.

From the industry development trend, smartphone display is transitioning to OLED, LCD TV market is gradually saturated, the future of large size and small size backlight module market potential is relatively small; and the future of the car display market potential is huge, by the backlight module manufacturers are unanimously optimistic, are currently accelerating the layout ( see Table 2 ). Focusing on the traditional medium-sized backlight module field, Hanbo Hi-Tech and Weishi Electronics have significant advantages in core technology patents, downstream customer resources, process experience accumulation, production costs, etc., and have more development advantages in the future.

The current global LCD display panel industry is rapidly moving to China, which brings development opportunities to China’s backlight module industry. In addition, automotive intelligence will also bring a continuous increase in demand for medium-sized car displays, the first to enter the field of medium-sized backlight module manufacturers with its customer resources, core technology, scale efficiency, and other advantages will be more beneficial.

The Korean display industry drove Korea’s exports, making Korea a display powerhouse in the world one exporter just 10 years ago. But it has been put into a position to completely lose its power as Korea’s national strategic industry due to a price war initiated by Chinese display makers and a complex global crisis.

LG Display and Samsung Display are struggling to find their ways out of the deterioration of their performance even after withdrawing from production of liquid crystal display (LCD) panels. The high-priced organic light emitting diode (OLED) panel sector regarded as a future growth engine is not growing fast due to the economic downturn. Even in the OLED panel sector, Chinese display makers are within striking distance of Korean display makers, experts say.

On Aug. 30, Display Supply Chain Consultants (DSCC), a market research company, predicted that LCD TV panel prices hit an all-time low in August and that an L-shaped recession will continue in the fourth quarter. According to DSCC, the average price of a 65-inch ultra-high-definition (UHD) panel in August was only US$109, a 62 percent drop from the highest price of US$288 recorded in July in 2021. The average price of a 75-inch UHD panel was only US$218, which was only about half of the highest price of US$410 in July last year. DSCC predicted that the average panel price in the third quarter will fall by 15.7 percent. As Chinese companies’ price war and the effect of stagnation in consumption overlapped, the more LCD panels display makers produce, the more loss they suffer.

As panel prices fell, manufacturers responded by lowering facility utilization rates. DSCC said that the LCD factory utilization rate descended from 87 percent in April to 83 percent in May, 73 percent in June, and 70 percent in July.

Now that the LCD panel business has become no longer lucrative, Korean display makers have shut down their LCD business or shrunk their sizes. In the LCD sector, China has outpaced Korea since 2018. China’s LCD market share reached 50.9 percent in 2021, while that of Korea dropped to 14.4 percent, lower than Taiwan’s 31.6 percent.

Samsung Display already announced its withdrawal from the LCD business in June. Only 10 years have passed since the company was spun off from Samsung Electronics in 2012. LG Display has decided to halt domestic LCD TV panel production until 2023 and reorganize its business structure centering on OLED panels. Its Chinese LCD production line will be gradually converted to produce LCD panels for IT or commercial products. TrendForce predicted that LG Display will stop operating its P7 Plant in the first quarter of next year.

Korean display makers’ waning LCD business led to a situation in which Korea even lost first place in the display industry. Korea with a display market share of 33.2 percent was already overtaken by China with 41.5 percent) in 2021 according to market researcher Omdia and the Korea Display Industry Association. Korea’s market share has never rebounded in for five years since 2017 amid the Korean government’s neglect. Seventeen years have passed since 2004 when Korea overtook Japan to rise to the top of the world in the LCD industry. Korea’s LCD exports amounted to more than US$30 billion in 2014, but fell to US$21.4 billion last year.

A bigger problem is that Korean display makers may lose its leadership in the OLED panel sector although it is still standing at the top spot. While Korea’s OLED market share fell from 98.1 percent in 2016 to 82.8 percent last year, that of China rose from 1.1 percent to 16.6 percent. Considering that the high-end TV market is highly likely to shrink for the time being due to a full-fledged global consumption contraction, some analysts say that the technology gap between Korea and China can be sharply narrowed through this looming TV market slump. According to industry sources, the Chinese government is now focusing on giving subsidies to the development of OLED panel technology rather LCD technology. On the other hand, in Korea, displays were also wiped out from national strategic technology industry items under the Restriction of Special Taxation Act which can receive tax benefits for R&D activities on displays.