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>> Ice and fire two-day display 21th,Jan,2019
In recent days, China's mobile phone display module and Internet TV module foundry company, which have no front panel production line, have begun to suffer from the ups and downs of upstream panels. According to relevant practitioners, due to the shortage of upstream panels, small and medium-sized display module companies have basically reduced their production capacity by 20% to 30%.
"Because of the fear of the concentrated production of six-generation panel production capacity in mainland China, overseas panel factories have been closing some low-generation panel production lines since the end of the previous year to avoid losses under price competition. Impact, starting from the second quarter of this year, the panel prices suitable for 4.5~6 generation line production have bottomed out. "There are people in the industry who report to the mobile phone online for the specific reasons.
He believes that since the beginning of the previous year, the new panel line for smartphones has been greatly improved due to the adoption of more advanced equipment and process technology, which has led to a continuous decline in panel prices by more than 30% per year. At the same time, in order to support new capacity and technology, governments have begun to reduce subsidies for these old panel production lines, causing some of the older panel production lines to suffer from de facto losses.
In order to get rid of losses, more and more panel makers began to extend their business to the back-end production of mobile phone display modules, in order to earn a replacement cost to balance their operating status. Since the beginning of last year, first of all, Samsung has stopped supplying front panels to mainland China and started to expand its module production base in South Korea and Vietnam. LGD stopped supplying front panels to mainland China from the end of last year, and also expanded a large-scale module production base in Vietnam to start direct supply modules. BOE in mainland China also quadrupled its back-end module capacity in the first quarter, tightening the supply of panels to the open market.
Under the influence of these comprehensive factors, even if everyone predicts that PC growth will begin to decline, the overall decline of tablet PCs by nearly 30%, the capacity released by these market recessions still can not fill the domestic Chinese brand mobile phones. Growth demand, mobile phone panel prices ushered in a rare rise in the market.
"And in the case of the panel factory to compete for the hard-won market to adjust the supply capacity of the mobile phone panel, it also lowered the amount of 32- to 40-inch TV panels on the six-generation panel line, in the second quarter. During the last month, the 32~40-inch TV panel also began to bottom out. "He believes that price fluctuations are limited to panels produced by the 4.5-6 generation line. "As for the capacity of the functional machine panel, the original production capacity was mainly provided by Shenchao and Huaying. After Huaying switched off the capacity of the functional machine panel, the production capacity of Shenchao was also taken off by Xiaomi, which was mainly used to produce red rice. The panel is out. So out of stock is also normal."
However, according to the mobile phone report online, in the seemingly favorable market, Samsung shut down a number of low-generation panel lines before the end of last year, and recently resolutely announced the reduction of production capacity of LCD panels, which will be shut down at the end of this year. At present, the world's largest 32-inch TV panel production capacity L7 panel line.
And this wave of price increases did not allow JDI and Sharp to live a good life. The main direction of JDI is the mobile phone panel, but in the first half of this year, JDI has not increased, but the revenue is lower than the original target of 10%, and the operating profit and loss and the final profit and loss are turned into losses. And in the case that all major domestic brands have begun to introduce In\On-Cell touch display panels, JDI has instead paid attention to the PC market and pushed its new PC panel products to Taiwanese companies. It can be seen that the utilization rate of its mobile phone panels is actually not high. It can be filled with the production capacity of the PC panel.
Sharp also did not give investors and operators enough confidence in this wave of market. Under the pressure of loss, they had to reorganize with Hon Hai, sell nearly 70% of the shares, and hand over their own brand use rights and physical management rights. And its 32~40-inch TV panel production line, which was also confirmed by Hon Hai, was recently announced to reopen.
In addition, Huaying's mobile phone panel line temporarily shut down at the end of last year, under the so-called out-of-stock and price hikes, did not take the opportunity to restart. That is to say, even if the mobile phone panel and the 32- to 40-inch TV panel are all out of stock and price hikes, the production capacity of Japanese, Korean and Taiwanese panel companies is still oversupplied and idle. This also confirms on the other hand that the so-called price increase has not yet risen above the break-even line of some panel makers.
In fact, due to the fact that the self-sufficiency rate of the panel in China still has a significant room for improvement, at the beginning of the year, after the Tiantian Ma and Huaxing Optoelectronics successively lit the six-generation LTPS panel line, AUO’s six-generation LTPS LCD panel line in Kunshan, Jiangsu Province was also 8 It will light up on the 9th of the month and is expected to start mass production in the fourth quarter of this year.
Even Huaying, which mentioned the closure of the mobile phone panel line, has re-invested in Fujian to build a six-generation production line to compete in the capacity of the Chinese mainland market. Even Hon Hai, which has Innolux, Chi Mei and Shenzhen Chao, has not stopped its capacity expansion. In addition to the two new six-generation lines in Zhengzhou, Sharp’s production capacity has also been reduced to such a huge capacity planning. It is certainly not an Apple customer to swallow.
"The six-generation line is built in mainland China. The manufacturing center for smartphones and TV panels has been transferred to mainland China. In the future, everyone is optimistic about the innovation capabilities and market management capabilities of China's new intelligent hardware." Industry professionals said on the mobile phone online that the six-generation line can produce both mobile phone panels and PC panels and TV panels, and the degree of freedom in conversion of production capacity is high.
"The competition pattern between panel makers has not changed much. Overseas panel makers will still dominate technology competition, such as the previous LTPS, In\On-Cell and other technologies, the current OLED display technology, etc., and the panels located in mainland China. The factory basically uses the most mature equipment and technology to plan to build a factory, and use the advantage of being close to the foundry market to compete in capacity." He said that this wave of stock-outs and price increases can only be maintained until the end of this year. In the third and fourth quarters, the six-generation line of Huaxing Optoelectronics, Tianma and AUO will start to ship, and the market shortage will be reversed. In addition, the production line of Xinli and BOE will be mass-produced next year, and the price of mobile phone panels will be back. In the long run, the display module factory's foundry capacity gap is still very large, everyone has room for expansion, and the competition between them is also the main capacity and price."
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