Samsung 'changes' again! Plans to postpone the shutdown of the LCD business until December next year
As LCD panel prices continue to rise, supply and demand in the entire market are insufficient. Samsung and LG, the Korean 'panel duo
LGD was the first to make a 'delayed production stop' plan. After announcing the delay of the LCD panel plan for one year, Samsung Display (SDC) also stated that it decided to postpone LCD production for 3 months.
After that, as the price of LCD panels rose further, SDC recently reported that it was planning to delay the production stoppage of LCD panels again.
According to the latest report from Korean media, the original plan to postpone the LCD shutdown to SDC in March next year is under evaluation to extend the shutdown time again to December next year. This is the same as LGD's 'decision' delay plan.
It is reported that at present, SDC has informed the LCD production line staff of Asan Industrial Park of this news.
Industry analysts believe that the reasons for SDC’s repeated “changes” on the LCD plan to suspend production may be related to the market rebound. This year, due to the epidemic, the housing economy has developed, and LCD TV and LCD panel prices have rebounded sharply.
Fan Yang, the founder of Baixingjia Power Grid, said that on the panel supply side, due to the delays in the launch of the two major manufacturers of SDC/LGD, plus domestic panel manufacturers such as Huaxing Optoelectronics and BOE will begin to release production capacity for large-size LCD in 2021 Panel supply will greatly increase overall production capacity next year, which will bring a certain 'relieving' effect to the panel demand of terminal color TV manufacturers next year, and will also restrain the 'rising' of color TV product prices to a certain extent!
According to Qunzhi Consulting’s statistics and forecast data, the panel prices of mainstream sizes have bottomed out in June this year. By December, the prices of mainstream sizes have increased by more than 60%. The cumulative increase of main sizes is as follows: The price of 32' rebounded most rapidly, with an increase of more than 90%, 43'FHD~55' UHD has increased by more than 60%, and the price of large size 65' has a moderate increase, but it has also reached more than 30%.
In the view of industry insiders, even if Samsung further delays the LCD panel business, it will not let go of the research and development of emerging technologies such as microLED, laser display and QD-LCD for Samsung.
According to previous media reports, Samsung will target its important Ru0026D direction in the QD-OLED business, and is preparing to invest approximately US$11.7 billion to expand the QD-OLED business by 2025 and fully engage the next generation of high-end display technology. The 'Main Track'.
In addition, there are also industry insiders who believe that the actual reason for the delay in the suspension of SDC is not that simple.
'SDC is still constrained by Samsung Electronics,' Wit Display chief analyst Luffy Lin further pointed out that at present, LCD panel prices remain high, and there is a rising trend, Samsung Electronics originally had to pay Other panel manufacturers purchase liquid crystal panels at high prices, and SDC delays the time to stop production of liquid crystal panels. Samsung Electronics' reimbursement can underwrite SDC's LCD panel production capacity next year, which will help partly ease the pressure on Samsung Electronics to purchase LCD panels. (Audiovisual circle, smart display)
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