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>> Chinese display makers reduce LCD production, will aggressively attack the OLED market 12th,Dec,2019
According to the Korean business "Businesskorea" report, in order to alleviate the continued decline in LCD panel prices, Chinese display manufacturers have begun to reduce their LCD panel production, and South Korean display manufacturers are also expected to obtain temporary relief while facing competition from Chinese manufacturers.
However, as Chinese manufacturers continue to catch up with OLED technology, major manufacturers such as Samsung Display and LGD need to remain vigilant.
Chinese manufacturers, which dominate the global LCD market, began to shift their focus from LCD in the second half of this year. BOE, the world's largest display company, has reduced its output of its 10.5 generation production line by 25%, and the output of Huaxing Optoelectronics and Huike's 8.5 generation LCD panels have also decreased by 10% and 20% this year.
As a result, market experts expect prices for large LCD panels to start rising early next year. At present, LCD prices are still lower than production costs. Last November, the price of a 55-inch panel was $ 151, and in October this year it has fallen to $ 98.
According to data from research institute IHS, as of the end of last month, the prices of 65-inch and 75-inch LCD panels have faced 14 consecutive months of decline.
If LCD supply is stable, panel prices are expected to increase from early next year. Soh Hyun-chul, a researcher at Shinhan Investment Corp., said in a December 2 report: "It is expected that LCD TV panel prices will rebound from next month and the upward trend will continue until next year. month". LGD expects this year's operating loss to exceed 1 trillion won, and its profitability is expected to improve due to this rebound.
However, BOE recently planned to invest about 7.9 trillion won to build a 6.5-generation OLED production plant, and Huike also planned to build a large 8.6-generation OLED production line that cost 5.4 trillion won. As Chinese manufacturers shift their focus to small and large OLEDs, Korean manufacturers urgently need to upgrade their related technologies.
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