BOE, Huaxing Optoelectronics and other Chinese factories rush to attack large-size LCD panels. The leading position of the Korean factory is not guaranteed.

summary: China's factory change strategy towards large-size LCD panel development, is expected to surpass the Korean factory in a few years, for the first time on the global large-size panel production leader position.

the Chinese factory to change its strategy towards the development of large-size LCD panels, it is expected to surpass the Korean factory in a few years, for the first time on the global large-size panel production leader position.

IHS Markit released a report on Sunday, pointing out that China's shipments of large-size LCD panels over 32 inches are estimated to reach 320000 pieces in 2017, up 33% from 2016. It is worth noting that the proportion of 32-inch grade products in Chinese factory shipments has decreased by 13%, revealing the Chinese factory's attempt to actively develop into larger panels.

panel, the higher the production technology, and the better the output efficiency and profit. The development of large-size panels by Chinese factories will not only pose a greater threat to Korean factories, but also improve profits, which can be described as killing two birds with one stone. Including Beijing Oriental (BOE), Huaxing Optoelectronics (CSOT), and CLP Panda (CEC-Panda) are all concentrated on expanding 43-inch, 55-inch and 58-inch panel capacity.

report predicts that China will become the world's largest TFT LCD panel production capacity by the end of 2018. Analysts further speculate that the Chinese factory may replace the Korean factory as the world's largest large-size panel. In 2015 and 2016, Chinese factories accounted for 33.2% of the global LCD TV panel shipments, second only to 36.4% of Korean factories.

report points out that the demand for OLED TV panels is rising slowly, and LCD will still dominate the market demand for large-size panels in the foreseeable future. The report estimates that LCD will account for 98.2% of TV panels in 2020, while OLED will account for only 1.8%.

Source: OFweek