Affected by the prolonged production schedule of Samsung Display’s 8.5-generation LCD factory in South Korea and the slow pace of second-tier panel makers to transfer TVs into IT products, it is estimated that TV panel shipments in 2021 will return to similar levels as in 2020. , Reaching 269 million pieces. China’s panel makers have included the top three in the rankings, accounting for more than 50% of the market in total.
With the consolidation of panel makers, production capacity convergence, technological improvement, and rising demand, in 2021, in addition to implementing the production strategy of large-size development, brand makers will continue to increase panel prices and reduce profitability. Under pressure, it has also begun to actively adjust product size configurations. Therefore, it is expected that the average size of TV panels this year has a chance to increase by 1.6 inches, moving to 50 inches.
TrendForce analyst Chen Qiaohui further stated that large size will actually help digest production capacity. The limited production capacity in the first half of 2021 will not only lead to a shortage of supply, but also support the continued upward trend of TV panel prices; and TV in the second half of the year. Whether the demand for panels remains the same, we must observe several key points: First, whether the increase in terminal market prices will affect buying; second, whether the epidemic situation has been effectively controlled after the vaccine is administered in various countries; third, whether the global economic recovery is obvious, etc.; The last question is whether the customer’s demand for excessive orders has bubbled due to the increase in the price of upstream raw materials, industrial accidents such as fires and other industrial accidents, the shortage of glass, the tight IC supply, and the prolonged transportation time.
The two giants of Chinese panel makers, BOE and China Star Optoelectronics, have continued to increase their production capacity and the merger and acquisitions have come to an end. Together, the two will account for as much as 40% of the overall TV panel shipments. At the same time, BOE and Huaxing Optoelectronics are actively enhancing their own technical capabilities and promoting the transfer of high-end products, such as 8K, ZBD, AM MiniLED, etc. In the future, it is expected to continue to extend the company’s territory to more upstream areas and achieve more systematic vertical integration by virtue of technological advancement and abundant funds.
In addition, Huike, whose production capacity continues to rise, has naturally become the focus of the market when supply exceeds demand. Together with the Changsha H5 plant that is about to enter mass production, Huike has four 8.6-generation production lines. This year, with the increase in production capacity, it has become the focus of first-line brands. With further cooperation strategies, it is expected that Huike will enter the top three in the TV panel shipment list for the first time, with shipments of approximately 41.91 million pieces, an annual growth of 33.7%.
Taiwan’s AUO and Innolux’s shipments have been slightly revised down due to limited production capacity, but the two are committed to product optimization and cross-field cooperation strategies, which bring them more advantages. Among them, AUO not only leads the industry in the development of ultra-high-end products 8K+ZBD, but also leads other panel manufacturers in the development of Micro LED. In addition to product diversity, Innolux has its own ODM as one of its advantages. It is worth mentioning that the two Taiwanese panel manufacturers rely on the advantages of the group and their long-term cooperative relationship with IC design manufacturers. In the current situation of tight IC supply, it is more advantageous than other panel manufacturers.
Although South Korea’s LGD and Samsung Display have extended the production schedule of the Korean LCD production line to meet the current strong market demand, they are still actively switching to new products. Among them, LG Display will expand the production capacity of its Guangzhou OLED plant in the second quarter of this year in order to further expand the OLED market. Although Samsung Display will fall out of the rankings due to production capacity reduction in 2021, new QD-OLED products are expected to officially enter the market in the fourth quarter of this year, with shipments of 2 million units expected in 2022.
Post time: Apr-13-2021