Korean factory collective attack on OLED LCD market changes
In the past ten years, LCD has been firmly occupying the TV mainstream market. Its slim size and larger display area mean that CRT TVs will eventually be completely replaced by LCDs, and early forecasts have also been verified in the terminal market. However, since entering 2016, there have been a lot of voices about the end of the LCD era. OLED technology is considered to be the best choice for replacing liquid crystals because of its self-luminous characteristics, true color, zero delay, infinite contrast, extreme ultra-thin, and flexible display.
South Korea has taken the lead as the world's largest panel country. First, LG Display recently closed its fifth-generation P4 plant in Gumi, which is another closed LCD line following the 3.5-generation line P2 plant. It is expected that before the end of the year, the 4th-generation line The P3 plant will also be closed. LGD expects to invest US$18.08 billion in the OLED industry by 2020. The plants will include P10 and E6 in Paju, E5 in Gumi, and an OLED plant in Guangzhou, China.
In addition, Samsung Display, one of South Korea's other pillar companies, has also closed a 7th generation panel factory and two 5th generation panel factories for three consecutive years, and has also built two large-scale OLED panel factories in Korea. This year alone, Samsung took out 8.8 billion U.S. dollars to expand its production capacity, and transformed some of its original LCD production lines into OLED panel production lines.
From the trends of the two giants, we can see that the Korean factory is speeding up the elimination of small and medium size LCD panels, and the trend of transitioning to OLED screens is very clear. Although new things are replacing old ones, they have always been in line with the law of development. However, for now, it is impossible for OLED to completely replace LCD in a short period of time. At the same time, Korean manufacturers cannot supply enough because of the adjustment of production capacity. The LCD panel also changed the global LCD market.
LCD still has the vitality to welcome new opportunities
Although OLED has become the new direction for future panel development, and the global panel manufacturers are actively laying out, in the short term, OLED is limited by the manufacturing process or production capacity can not completely replace LCD. For the commercial life cycle of LCD TVs, there are at least 5 years, especially in the large-size TV field. Due to factors such as cost and selling price, OLED makes the liquid crystal market still prosperous.
Samsung shut down a 7-generation panel plant last year, causing a tight supply of 40-inch TV panels. The LGD's closure of the LCD panel plant will inevitably cause structural changes in the panel supply structure on the market. But if we look at it from another perspective, it is also a new opportunity for domestic LCD panel makers. If we can grasp this opportunity, we will have the opportunity to cooperate with more manufacturers, and at the same time, we can also increase our influence.
Currently, in addition to deep cultivating small-sized OLED panels, BOE's panel makers mainly focus on the 8.5-generation line, which is the main force for the production of 55-inch TV panels. Currently, it has 4, 5, and 6-generation lines, which are medium and small sizes. Only AUO, Innolux, Caijing, and Huaying are the four Chinese panel makers in the production line. From the perspective of production capacity alone, China's panel makers have unique advantages and welcome new opportunities.
Judging from the current situation, the collective transformation of Korean factories OLED technology has brought business opportunities to Chinese manufacturers, and LCD technology can not disappear in a short period of time, loss of vitality; and OLED panel is not likely to erupt immediately, becoming the dominant market. However, it is undeniable that TV industry will surely usher in a drastic change in the next 5 to 10 years.
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