LCD panel prices continue to fall, BOE, China Star Optoelectronics, and Huike have reduced production
According to BusinessKorea, as the price of liquid crystal display (LCD) panels continues to fall, Chinese LCD manufacturers have begun to cut production to ease the economic recession.
China’s BOE ranks first in the world in terms of LCD shipments this year, with a market share of 18.2%, and has decided to reduce production. The company has begun to reduce the output of the 10.5-generation LCD production line by 25% from July, and the output of other LCD production lines by 10%. Huaxing Optoelectronics and Huike also reduced the operating rate of 8.5-generation LCD products by 10% and 20%, respectively.
In addition to falling prices, the Chinese government has also reduced its support for panel manufacturers. China Display Corporation has been increasing the production of LCD monitors through subsidies from local governments. However, the Chinese government has recently decided to change its support measures, because Chinese companies’ share of the LCD market will exceed 50%, and the expansion competition of Chinese companies has become fierce.
Therefore, Korean market experts said that Chinese display manufacturers are very likely to abandon the excessive competition of factory expansion and further ease the oversupply situation. China’s share of the global LCD market is expected to increase from 29% in 2016 to 54% in 2020.
Research data from the global market research company IHS Markit shows that as of August, the prices of 32-inch and 55-inch LCD TV panels were US$33 (39,300 won) and US$106 (126,340 won), respectively, compared with the beginning of the year. Decrease by 20% and 26%.
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