According to media reports, global LCD panel prices rose by about 10% in August, which is the third consecutive month that global LCD panels have risen. China is the world's largest producer of LCD panels, and the continuous increase in LCD panel prices has allowed Chinese panel companies to continue to improve their efficiency.
China's two major LCD panel companies BOE and TCL Huaxing are respectively the top two in the global LCD panel market. Coupled with the production capacity of small and medium-sized panel companies such as Tianma and Visionox, China's LCD panel production capacity has accounted for more than half of the global market.
The price of LCD panels continues to rise, driving the profits of Chinese panel companies to continue to rise. The recent performance announced by TCL Technology, China’s second largest panel company, showed that revenue in the first half of the year increased by 12.3% year-on-year and net profit increased by 7.6% year-on-year, reversing 2019 performance The downward momentum.
Since July, the increase in global LCD panel prices has expanded, which means that the performance of the two major LCD panel companies, BOE and TCL, will be further improved, bringing them abundant funds, which will be huge of benefits for them who urgently need funds to develop advanced panel technology.
After BOE and TCL have achieved the forefront of the global industry in the LCD panel market, they have begun to develop more advanced OLED and microLED panel technologies. Among them, BOE has already put into production two small and medium-sized OLED panel production lines, and TCL Huaxing has also put into production a small and medium-sized OLED panel production line.
However, they still have a technical gap with the industry leader-South Korea's Samsung. BOE had originally sent Apple to test small and medium-sized OLED panels, but in the end Apple only used South Korean Samsung and LGD OLED panels instead of BOE's OLED panels. It can be seen that there is still a gap between Chinese panel companies and South Korean panel companies in OLED panel technology.
Continuing to improve OLED panel technology requires continued investment in capital, and the current continuous increase in LCD panel prices will bring capital to BOE and TCL Huaxing to help them accelerate the transformation and upgrading of OLED panel technology.
In terms of more advanced microLED panel technology, South Korea’s Samsung has taken the lead, while Taiwan’s panel companies have chosen to research and develop a less difficult miniLED panel technology and have successfully put it into production. Chinese panel companies are lagging behind in this technology, and it is more necessary to catch up. Huge amount of financial support.
Chinese panel companies have suffered a lot when developing LCD panel technology, and BOE has suffered losses for many years. Today, BOE and TCL Huaxing have become the top two in the global LCD panel market. The continued increase in LCD panel prices will bring them huge benefits that will help them to improve OLED panel technology and develop more advanced microLED panel technology to accelerate Shorten the technology gap with Korean and Taiwanese panel companies.
In the era of LCD panels, it took about ten years for China to catch up with South Korean panel companies. Today, China has greatly shortened its OLED panel technology with South Korean panel companies. With the rapid catch-up of Chinese panel companies, South Korea’s two major panel companies, Samsung and LGD, have fallen into losses, while the profits of Chinese panel companies are currently growing rapidly. With financial support, Baiming Technology believes that China is in a more advanced microLED panel technology. Admiral catches up with South Korean panel companies.
