Following LGD, Samsung Display has also decided to postpone 3 months to continue LCD production
Since May of this year, the complete TV market has recovered, and the prices of large-size TV panels have continued to rise. According to statistics from the micro-net, the prices of TV panels have risen sharply in the third quarter, with prices of some sizes rising by more than 30%. As the market picks up, panel manufacturers have also changed their business strategies. Following LGD, Samsung Display (SDC) has also decided to postpone its continuous LCD production for 3 months.
According to a Korean media News.mt report, SDC decided to postpone the continuous LCD production for 3 months and notify the supplier. For this reason, the original plan to 'exit LCD' during the year has been changed to continue production of LCDs in the first half of next year.
In recent years, with the continuous release of the production capacity of high-generation production lines in mainland China, the supply of LCD panels has been oversupply, resulting in continuous decline in product prices. Japanese and Korean panel manufacturers have therefore switched to more profitable new models such as LCD for Samsung and QLED. Display technology, and gradually reduce the production capacity of LCD panels. Especially since the beginning of this year, affected by the new crown pneumonia epidemic, the market is generally pessimistic about the terminal boom. For this reason, Samsung Display will completely withdraw from the LCD market before the end of this year.
At the end of March this year, Samsung Display announced that the company has decided to stop all LCD panel production in China and South Korea before the end of this year. This means that Samsung SDC will officially withdraw from the competition in the LCD panel market this year.
Previously, Samsung Display has sold its shares in the Suzhou Samsung factory to TCL Technology. It is reported that TCL Technology will acquire 60% equity of Suzhou Samsung Electronics Liquid Crystal Display Technology ('SSL') and 100% equity of Suzhou Samsung Display at a consideration of approximately US$1.08 billion. At the same time, Samsung Display will increase the capital of TCL Huaxing with a consideration of 60% of SSL shares for US$739 million. Through this transaction, Samsung Display will become the second largest shareholder of TCL Huaxing.
However, due to the impact of the epidemic, home office and online education have greatly increased NB panels. Therefore, some TV production capacity has been transferred to IT. When TV demand rebounds, there will be short supply and price increases. . According to the statistics on TV panel prices of Jiwei.com, the price of most size TV panels increased by more than 30% in the third quarter.
In the fourth quarter of 2020, NB and TV demand continued to be strong, and TV panel prices continued to rise from October to November. According to Sigmaintell's 'supply and demand model' analysis, the global LCD TV panel market continues to suffer from a shortage of supply in the fourth quarter. On the supply side, affected by the shortage of materials such as upstream ICs, the effective supply area of u200bu200bTV panels has grown limited; on the demand side, global leading brands still maintain strong stocking demand. LCD TV panel prices continued to rise sharply in October. Sigmaintell predicts that as the demand for stocking in overseas peak seasons declines and the impact of panel prices on demand will gradually appear, the price increase in November will narrow.
The industry believes that by the first half of next year, TV LCD panel prices will not fall sharply. As the market improves, SDC may once again postpone the suspension of LCD production. Prior to this, LGD had decided to extend the production plan for one year, and informed its partners and other related companies of this plan.
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