Samsung LG exits the LCD screen market, BOE, CLP Panda usher in positive

Reuters reported that Samsung Display announced on March 30 that it has decided to end all its LCD panel production in China and South Korea before the end of this year. In an interview with some media, Zheng Haorong, the president of LG Display, revealed that the LCD panel factory in South Korea that is used to produce TVs will be closed before the end of the year. The two Korean companies will stop the production and supply of LCD panels and withdraw from competition in the market.

Samsung and LG withdraw

Samsung and LG announced their withdrawal from the LCD market. On the one hand, it is because considering that the price of LCD screens around the world has been declining recently, consumers are The demand is also gradually decreasing. On the other hand, we have to bear pressure from Chinese competitors, because LCD screens produced in China are occupying more and more market shares. However, the two companies have not disclosed the real reason for discontinuing LCD screens.

According to research data from global market research company Omdia, Samsung Display’s LCD panel market share in the global market was 10.9% in 2019, down 7.1% from 2016.

In contrast, the market share of Chinese companies such as Fang, CLP Panda, and Huaxing Electronics has increased rapidly compared with three years ago. Among them, BOE accounted for 18.9% of the market. Rate, surpassing LG Display for the first time, becoming the world’s largest LCD panel supplier.

According to research data from global market research company Omdia, Samsung Display’s LCD panel market share in the global market was 10.9% in 2019, down 7.1% from 2016, while LG Display’s Although its market share decline was lower than that of Samsung Display, it also fell to a certain extent. As of the end of 2019, LG Display’s LCD panels accounted for 15.6% of global large-size panel production capacity, that is, P7 and P8 correspond to 11% of global large-size panel production capacity.

As far as the current market competition pattern is concerned, it can be seen that, in addition to Japanese and Korean manufacturers, the market position of domestic manufacturers in my country has become more prominent. The data shows that in 2018, the global LCD panel shipments were the largest The top six companies are BOE, LG Display, Lianchuang, AUO, Samsung, and CLP Panda. Among them, BOE ranks first in the industry with a shipment of 37.7 million units.

According to the prediction of the Korean Semiconductor and Display Association, by 2023, Chinese companies will have a market share of 58% in the global panel market. Among them, LCD panels will enter the 'Chinese era'. It is predicted that China will set up 19 large-scale panel factories of generation 8 to 10.5 before 2022. After China establishes a panel factory of generation 8.5 to 10.5, the production cost of the products is only 1/3 to 1/5 of that of Korean factories. In addition, as the biggest use of LCD, with the change of consumer habits, the sales of the color TV industry have declined, and some companies that mainly produce color TVs have begun to transform, which also cast a shadow on the future of LCD panels.

This also means that as the world’s two major display giants gradually reduce their LCD market share, Chinese screen manufacturers will further expand their global footprint.

Future screen development trend

Samsung predicts that it will officially produce QD-OLED panels in 2021 and achieve a monthly output of 30,000 units by 2025. The goal is to make further efforts to promote the research and development and stable production of quantum dot screens. It is worth noting that the production goal of LG Display’s OLED factory in Guangzhou is to produce 15,000 panels per month in the first quarter. In the fourth quarter, it reached a monthly production capacity of 70,000 yuan. This new type of OLED has a service life of up to 1 million hours and uses indium phosphide materials instead of toxic cadmium materials.

Data shows that as of October 2019, 23 AMOLED production lines have been built globally and 6 are under construction. Among them, 11 production lines have been built in mainland China and 4 production lines are under construction, with a total investment of more than 400 billion yuan. By 2022, after the AMOLED production lines currently under construction in the world are fully completed and fully produced, the total production capacity is expected to reach 30.27 million square meters per year, of which the total production capacity in mainland China will reach 16.86 million square meters per year, accounting for more than 50% of the world’s total .

In the future, the development trend of the OLED industry should do well in the following aspects. First, move towards the popularization of market applications. At present, the world's top 3 notebook computer companies, top 5 smart phone companies, as well as 80% of TV companies and 90% of smart watch companies have launched OLED screen terminal products.

South Korean companies occupy a leading position in the OLED field. Samsung plans to invest US$2.15 billion to seize the large-scale TV OLED panel market, while LGD announced that it will invest US$2.6 billion to promote the development of LCD for Samsung production lines. Domestic companies have made rapid progress in recent years. In the first half of 2019, domestic companies accounted for more than 10% of the global OLED market. Seven production lines of BOE, Tianma, Visionox, and Hehui Optoelectronics have all entered the mass production stage. There are still many production lines under construction.

From an objective analysis, Korean companies are leading the OLED field, but our country’s OLED technology is catching up with Korean companies at the fastest speed. Even if Samsung and LGD abandon the production of LCD screens and move to high-end products, It will still be impacted by Chinese companies, because domestic manufacturers such as BOE have begun to master OLED technology. OLED competition will become very fierce.

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