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Company News >> While LCD layoffs, while catching OLED traitors, LGD's panel business is a bit square 8th,Oct,2018
                                          A spokesman for Apple's panel supplier LGD in South Korea confirmed that LGD will use voluntary retirement to lay off employees, which is the first layoff of LGD since its inception. LGD said that LG Display plans to accept applications for voluntary retirement from production departments in October. The company's production department employs approximately 65% ​​of all employees.

LGD said it is preparing to shift its main business from LCD to OLED. As the current OLED business has less demand for production personnel and is beginning to implement automated production, it is preparing to cut employees through voluntary retirement plans. However, LGD said it will continue to increase the proportion of R&D personnel and engineers to improve the competitiveness of the industry.

However, just as LGD released this news, it was reported that LGD recently conducted a survey of suspicious espionage activities at its headquarters in Seoul, mainly for the leakage of key information such as cutting-edge technologies including OLED. During the investigation, security officials conducted searches for possible eavesdropping devices in the conference room and office after working hours, but fortunately no evidence was found.

In the last few weeks, the above measures have been taken because of the suspicious disclosure of confidential information at its headquarters. Some Korean media quoted insiders of LGD as saying: "Because the content discussed at the recent C-level executive meeting has been leaked many times, LGD seems to be really concerned about security issues. Therefore, LGD will be suspected to be in its conference room or office. An eavesdropping device is installed."

Information from the Rising Sun display and touch shows that since last year, China's panel shipments have rapidly climbed to around 40% of the global market. Since the new production capacity of China's panel companies is based on more advanced production equipment, and the location of the plant is selected in the mainland China region where investment costs and operating costs are relatively low, and the financing is supported by local finance and finance, At the ex-factory price, it is obviously more competitive.

In fact, LGD was also in this way, investing more advanced production equipment to expand production capacity, and quickly set off at a low price, and became the world's largest LCD panel company until it was only China's panel companies this year. BOE exceeds.

However, as LGD has been hesitant in the pace of expanding its new capacity in recent years, it has swayed in the LCD and OLED business in the middle, which is also subject to the away market in China, thus missing the opportunity to expand production on the LCD. At the same time, LGD's products have all turned to the high-end market through the technology upgrades of previous years. Therefore, in the relatively low-end emerging markets, the overall shrinkage is also a matter of extenuating.

However, the shrinking market share of LGD has brought a lot of problems to LGD. In addition to the share of insurance, it has to use its own production cost technology to produce low-end products, resulting in operating losses, that is, capacity utilization begins. decline. According to information obtained by Li Xing in the industry, LGD has almost turned off all panel lines below 6 generations in three years. In order to save costs, some production lines have even been completely rebuilt, even if the original heavy investment equipment is also buried as a foundation filler.

In addition, even LGD, the business focus of LGD, has begun to fully pursue Korean companies from technology to production capacity, which has caused the Korean display industry to worry about corporate information leakage. From the outset, panel companies in mainland China have been competing to hire LGD and its competitors, former Samsung executives and employees, to accelerate their OLED projects.

According to the information that Li Xing learned in the industry, there are about a thousand technical personnel involved in OLED technology in panel companies in mainland China. About 400 of them are from Samsung and 200 others. It is from LGD, and about one hundred to two hundred people are from Japan, Taiwan, and the United States. The real OLED talents cultivated in mainland China are less than 300.

Therefore, every time a panel company in overseas has a personnel change, it will be concerned by panel companies in mainland China. In fact, in the past ten years, the personnel of overseas panel companies, whether they are dismissed, retired, or resigned, except for some of them who went out to start a business or change their careers, basically entered the position of senior executives in panel companies in China. The reason is very simple. As long as you are interested in coming to work, panel companies in mainland China will directly take out ten times your existing salary.

At present, the global panel market is affected by the increase in the self-sufficiency rate of China's production capacity. The overall overcapacity situation is becoming more and more obvious. In addition, the situation of China's consumption degrading is becoming more and more serious. Consumers are more willing to purchase so-called low-cost intelligent networks. TV consumption is not willing to spend more than one to two times to buy high-end TV products. Therefore, high-end production capacity is first expelled from the Chinese market.

The industry result of overcapacity is the price decline, which in turn leads to a decline in product profitability. At present, LGD has lost to Samsung in the high-end LCD TV field, and its capacity in OLED TV is limited by its production capacity. Therefore, LGD has not been able to get rid of losses this year.

Because it is really unable to cope with industry competition, LGD announced in July this year that it plans to cut 2.7 billion US dollars in capital expenditure by 2020, and the remaining capital will all turn to the OLED field.

However, this time LGD is laying off employees and worrying about technology leaks. Is it not afraid that those technicians who want to get high wages from panel companies in China will voluntarily retire and rationally put their own skills to serve Chinese panel companies! It seems that in the case of overcapacity in the market, even the industry giants such as LGD have difficulty in choosing.
 

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