On July 12, 2015, BOE A, a leading panel company in China, announced that it has signed an investment framework agreement with Hefei Municipal Government and Hefei Construction Investment Holdings (Group) Co., Ltd. The two parties intend to invest RMB 40 billion in Hefei. The first 10.5 generation LCD LCD panel production line.
Due to the opening and construction of several high-end LCD panel production lines in mainland China, by 2018, China's domestic LCD panel production capacity is expected to surpass that of South Korea. In particular, the two leading panel makers of China Star Optronics, a subsidiary of BOE A and TCL Group, will surpass Korea. Enterprises are overriding the layout of LCD LCD TV panels, mobile device panels, and OLED panels.
As Korea's two largest panel makers, LG Display and Samsung Display are bound to feel pressure from Chinese panel companies to compete. In terms of LGD, the company said during the commemoration of the 20th anniversary of its LCD panel production that it may launch a 10-generation OLED panel production line. This is the first time that LGD has spoken out about this project. For SDI, it is also a real issue whether to build a new 10-generation LCD panel production line.
At present, the world's highest LCD panel production line is Sharp 10th Generation (SDP), which is jointly operated by Sharp and Hon Hai Group. Since Hon Hai Group Chairman Terry Goo has consistently opposed Samsung, Samsung SDI is unlikely to insert a foot in the SDP. Samsung is facing a dilemma. On the one hand, high-end LCD panel production lines in mainland China have been launched one after another, and the oversupply of production capacity has continued. On the other hand, in the face of the competition between BOE and LGD, if Samsung maintains the status quo, it is equal to the large-size panel market of 60 and 65 inches or more. For Chinese companies and LG.
Industry analysts pointed out that LGD still has a different place from BOE and Samsung, that is, LG Electronics' OLED TV development strategy. TVs must be popularized and the supply chain must be expanded. The production capacity behind is the key. China is the world's largest TV market. The average sales size of color TVs is increasing every year. OLED TVs are replacing LCD TVs. First, they must gradually replace LCD panels in the upstream.
According to LGD's plan, the company intends to shift its investment focus to OLED in the next three years. Before 2018, a total of 10 trillion won was invested to expand the production scale of large OLED panels, flexible OLED panels, and high-end LCD panels.
The above analysts believe that after a huge investment in the early stage, LG's OLED strategy is no longer an arrow, as the next generation of display products, smart phones have been widely used flexible OLED panel, OLED TV is also on the road to growth, the future There are also car panels, wearable device panels, and foldable display devices. Chinese companies are chasing LCD panels and LGD must choose to explore new competitive advantages.
In addition to LGD, Japanese companies are also closely following OLEDs. Although the mass production of large-size OLED panels is basically on hold, JOLED, which is composed of Japanese electronics giants such as Sony and Japanese displays, backed by the government funds of the country, and continues the technology of Sony, Panasonic and other manufacturers to accelerate the advancement of OLEDs. R&D and base construction.