Korean media: Chinese panel manufacturers reduce LCD production, Korean companies are expected to get a respite
According to BusinessKorea reports, since the second half of this year, Chinese panel manufacturers have begun to reduce liquid crystal display (LCD) production to curb the continued decline in LCD panel prices. Based on this, South Korean panel makers are expected to get a respite, but it cannot be ignored that Chinese companies are quickly catching up with Samsung Electronics and LG Electronics in terms of LCD for Samsung technology.
Since the second half of this year, Chinese panel makers, which dominate the global LCD market, have reduced LCD production and gradually moved to the LCD for Samsung market. Among them, BOE, which has won the world’s largest TV panel shipments, has reduced the output of its 10.5 generation LCD production line by 25% since July; Huaxing Optoelectronics and Huike have also reduced the output of its 8.5 generation LCD production line by 10% and 20%, respectively. .
Market observers predict that the price of large-size LCD panels will rebound from the beginning of next year. Although the current average price of LCD panels is still lower than the production cost, Shinhan Investment Corp. (Shinhan Investment Corp.) pointed out in a report released on December 2 that as LCD supply conditions return to stability, panel prices will start from the beginning of next year. Start to get better.
For example, the report said that the price of 32-inch TV panels shipped in the form of open cells (semi-finished products without backlight modules) will rise by 29% from US$31 in December this year and reach 40% in September next year. US dollars. And it is expected that LCD TV panel prices will begin to rebound from January next year, and the upward trend will continue until September next year.
This is undoubtedly good news for South Korean panel manufacturers that have already experienced serious losses in their operations, especially LG Display whose sales are 80% from LCD monitors. If LCD TV panel prices stop falling and recover, the company's profitability is likely to increase.
But the report also pointed out that although South Korean panel makers are expected to benefit from this, it is still necessary to remain vigilant that Chinese companies are quickly catching up with Samsung Electronics and LG Electronics in terms of LCD for Samsung technology. (BusinessKorea)
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