Shenzhen Enrich Electronics Co., Ltd

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Company News >> LCD panel how to prevent falling into excess capacity? 16th,Dec,2017
                                                 Prospective investment advisers to the advisory body of the IPO consider that the overcapacity existing in the domestic market is mainly a derivative of the government-driven investment model. Take the steel, electrolytic aluminum and photovoltaic industries as an example. From the root of formation, the problem of overcapacity is that the government intervenes too much in the microeconomic activities, thus distorting the price signal and distorting the supply curve and cost structure of enterprises . On the one hand, the industrial environment created by various subsidy policies of local governments in terms of funds, venues and taxes can easily make enterprises generate impulses that are bigger and faster and bigger and stronger; on the other hand, the government's strong intervention enables enterprises to invest Creditors and creditors overly believe that blind expansion of the government after all.
In order to withstand the crisis of survival caused by price fluctuations, LCD panel makers continue to increase the production efficiency of their existing production lines. On the other hand, they continue to invest heavily in the construction of more advanced production lines in order to obtain excess profits in emerging high-end markets. As investment in high-generation LCD panel production line will greatly promote the development of the local economy, support for the development of LCD panel makers for local governments can both promote the local economy and rapid industrial development, but also rapidly improve performance. However, once the investment projects led by the local governments are out of the market, they can not step on the pace of the industrial cycle and may plunge the mistakes made by domestic manufacturers in overcapacity into an expansionary trap.
In addition, from the perspective of the global flat panel display industry, the advent of new display technologies for OLEDs provides a rare opportunity for development in China's display industry. As TFT-LCD and AMOLED between the technology-related and resource sharing as high as 70%, with the future of foreign manufacturers to further open the field of flat panel display, to relax our output lines and technology restrictions, the domestic LCD panel should seize the industry Transfer the opportunity to optimize their own industrial structure, vigorously introduce high-generation production line, through the backward transformation of the generic production line to meet the development and production needs of the future AMOLED products, reasonable adjustment of production capacity and supply and demand, improve profitability make itself into a virtuous circle, Promote the healthy development of the industry.
 

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