When The LCD Panel Is Cold, The Flexible OLED Display Screen Is Now Hard To Find

China touch screen network news, LCD panel winter: Samsung LG Foxconn has begun to close the factory! The flexible OLED display screen is "hard to find one screen ". Global LCD panel overcapacity is continuously fermenting.
On August 26, BOE announced the first half of 2019 annual report. The financial report showed that BoE's operating income in the first half of this year was 55.04 billion, with a year-on-year increase of 26.6% and net profit of 1.67 billion, with a year-on-year decrease of 43.92%.
Not only Boe, but also three domestic panel manufacturers including Huaxing optoelectronics and shentianma all have the phenomenon of increasing income but not increasing profits. According to the previous TCL group semi-annual report, Huaxing Optoelectronics's revenue in the first half of this year was 16.28 billion yuan, up 33.5% year-on-year, and its net profit was 1.02 billion yuan, down 7.8% year-on-year.
Shen Tianma's revenue in the first half of this year was 14.595 billion yuan, up 4.43% year-on-year, and its net profit was 0.644 billion yuan, down 17.68% year-on-year.
The "winter" of LCD panel has arrived. How will major manufacturers spend the winter?
LCD panel "winter"
The reason why the profits of the three major panel manufacturers all fell is that the price of LCD panel continues to fall.
Since the middle of 2017, the average decline of LCD panel has exceeded 50%. At present, the price of TV panel of 65-inch and below has fallen below the price cost of most panel manufacturers.
The reason why the price fell was that due to the slowdown of global economic growth, the production capacity of the high generation line of semiconductor industry was released rapidly and intensively, which eventually formed a "cluster" situation.
Data shows that in the first half of 2019, the global LCD TV panel shipment scale was 0.14 billion pieces, a year-on-year increase of 3.6%; in the same period, the global LCD TV panel production capacity area increased by 12.2% year-on-year. The growth rate of shipment is lower than the growth rate of panel capacity, and the industry inventory gradually increases.
However, in the face of this situation, the phenomenon of "closing factories and reducing production" in the industry is also continuously fermenting.
On August 20, some insiders said that Samsung Display, the panel manufacturer of Samsung Electronics, was taking measures to reduce the output of LCD panels. The company plans to close one LCD production line with a monthly production capacity of 90 thousand yuan this month and reduce the production of another production line next month.
LG Display, a panel enterprise under LG Group, has also reduced its production since June in the face of the decline in the price of large-size LCD panels, including its 5th, 6 TH, 7.5th and 8.5th generation factories.
Foxconn also announced recently that it intends to sell the LCD panel factory of 10.5 generation line located in Zengcheng district, Guangzhou. The production line announced its investment plan on December 2016, with the investment amount reaching 61 billion yuan, it is planned to be put into mass production in October this year.
Now, at the time of mass production, Foxconn is considering shutting down the factory, which has already explained the problem.
However, some analysts believe that with this wave of shutdown and rotation, the price of panel is expected to rebound in the future. "It is estimated that two 220 generation lines with a total of about 8.5 k/month in South Korea will be shut down, and Taiwan manufacturers will begin to reduce the crop rate of the production line, BOE also reduced the production capacity of 10.5 generation line, which was full of production and sales in the first half of the year by about 25%, "the research team of Guojin Securities pointed out," the supply-side production capacity clearing is expected to drive the panel price to stabilize and rebound in the fourth quarter."
As for overcapacity, BOE also mentioned in an interview including 21tech last week that the enterprise's better performance in this industry depends on product competitiveness and technical competitiveness. "Any industry will have the problem of overcapacity. After development, reshuffle, redevelopment, reshuffle, several rounds of fighting and then centralization, there are finally three to five left ."
Spring of flexible screen
On the one hand, the liquid crystal panel is cold; on the other hand, the flexible OLED display screen is now "hard to find ".
Nowadays, the public's expectation for mobile display terminals is lighter, more portable and various forms of manifestation, and almost everyone is firmly optimistic about this market.
Light and thin, portable and various forms of expression, OLED panel just caters to these three points. Due to the diversity, lightness, portability, flexibility and high performance of OLED panels, OLED panels are widely used in small-sized digital products such as smart phones and are expected to become the next generation of new display technology.
According to the data released by Qun Zhi Consulting, in the first half of 2019, global smartphone panel shipments declined by 5.2%, while OLED phone panel increased by 19% against the trend. Thanks to the rapid growth of demand for fingerprint identification under the screen, global OLED panel shipments are expected to increase by 13% in 2019.
At present, Samsung still has more than market share in the share of flexible OLED panels. However, domestic enterprises including BOE, vishino and Tianma Microelectronics are all investing more in OLED production capacity.
DSCC, an industry consulting and data provider, estimates that from 2018 to 2023, Chinese display manufacturers will spend 29.7 billion US dollars (about 204.3 billion RMB) to increase the manufacturing capacity of mobile OLED display screens, it accounts for 88% of the increased production capacity of global manufacturers.
In terms of AMOLED smartphone panel shipments, Samsung's market share fell below 90% for the first time this year. At present, Samsung has one 4.5 generation line, one 5.5 generation line and two 6 generation lines in the OLED panel field, and gradually shut down the old production lines, change the reserved TFT-LCD production line to the production QD-OLED production line.
Last year, LGD announced the construction of the world's first 10.5 generation OLED panel production line to have the ability to mass produce large-sized OLED panels. In the field of large-size OLED, LGD is currently the only panel factory in the world that can mass produce on a large scale.
In the first quarter of this year, BOE's market share in the global OLED smart panel reached 5.9%, ranking first in China. It is understood that BoE currently has two AMOLED production lines, Chengdu and Mianyang, among which Chengdu production line is the first 6th generation flexible AMOLED production line in mainland China; Chongqing and Fuzhou production lines are under construction.
BoE said that the yield rate of the third generation AMOLED (flexible) production line in Chengdu reached a relatively high level in the industry, and the shipment volume in the first half of the year exceeded 6th pieces. Mianyang's 6th generation AMOLED (flexible) production line has realized mass production and shipment, and the market share of flexible OLED smart phones has been greatly improved.
Shen Tianma invested and built a 5.5-generation AMOLED pilot line in 2010, which is one of the earliest domestic enterprises to mass produce AMOLED mobile phone panels. The OLED in, Tianma organic luminous in Shanghai 5.5 generation rigid OLED production line has been mass production, the current capacity for 5 k/month. April 2017, Wuhan Tianma 6th generation AMOLED production line while light rigid and flexible AMOLED product, last June formal production.
CSOT in Shenzhen, 11th generation TFT-LCD and AMOLED production line project has been put into operation, is expected to be the end of 2019 full production, the design capacity 90 k/month; the T4 project in Wuhan is planned to be mass produced in the first half of 2020, with a designed capacity of 45 k/month.
At present, vishino has three OLED production lines and one AMOLED module line, which are distributed in Kunshan, Guan and Hefei respectively.
With the continuous efforts of domestic manufacturers, it must be possible to break the monopoly of Samsung and realize the "curve overtaking" of domestic flexible screens in the near future ".