Chinese display manufacturers reduce LCD production and will actively attack the OLED market
According to a report by Korean media 'Businesskorea.
However, as Chinese manufacturers continue to catch up in LCD for Samsung technology, large manufacturers such as Samsung Display and LGD still 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 the output of its Gen 10.5 production line by 25%, and the production of Huaxing Optoelectronics and Huike's Gen 8.5 LCD panel have also decreased by 10% and 20% this year.
For this reason, market experts predict that the price of large LCD panels will start to rise from the beginning of next year. At present, the price of liquid crystal displays is still lower than the production cost. In November last year, the transaction price of a 55-inch panel was US$151, but in October this year it has fallen to US$98.
According to data from the research organization 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 the beginning of next year. Soh Hyun-chul, a researcher at Shinhan Investment Corp., said in a report released on December 2: 'LCD TV panel prices are expected to rebound from next month, and the upward trend will continue until next year. month'. LGD expects that this year's operating loss will exceed 1 trillion won, and its profitability is expected to improve due to this wave of rebound.
However, BOE recently plans to invest about 7.9 trillion won to build a 6.5-generation OLED production plant, and Huike also plans to build a 5.4 trillion won 8.6-generation large-scale OLED production line. As Chinese manufacturers shift their business focus to small and large OLEDs, Korean manufacturers urgently need to upgrade their related technologies.
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