LCD panel companies originally hoped to recover the market in the second half of this year, but at present it seems that the situation is not optimistic, and its future planning tends to be conservative.
LG Display Company (LG Display Company), an LCD panel company of the Korean LG Group, announced yesterday that construction of the LG Guangzhou 8.5-generation line project had been postponed. In addition, Samsung's Suzhou project and the Kunshan project of AU Optronics have not yet finalized when the project will start.
LG originally planned to hold a ground-breaking ceremony for the 8.5th Guangzhou Line on August 30th, but in the end, LG Electronics notified the Guangzhou Municipal Government to cancel the ceremony. LG Display’s chief executive officer, Ren Yingshou, explained yesterday that the global market is not very booming, and television display sales are somewhat inconsistent with the company’s previous forecasts, thus cancelling the ground-breaking ceremony.
"We will not cancel the entire project and will be motivated when appropriate." Qiu Yisheng, vice president of public relations at LG Display, also stressed that LCD panel prices have fallen for more than a dozen consecutive months, and LCD panel prices are not seeing a rebound in the second half of this year. The prospect of the industry is more pessimistic.
At present, the weak market in Europe and the United States has caused the growth of color TV sales to slow down. Even in the Chinese market, this year's color TV sales are not as optimistic as before, and LCD screen competition is becoming increasingly fierce. (Editor's Note: The cost of LCD panels accounts for 40% of the cost of LCD TVs.)
Compared with LG's prudence, the mainland's two 8.5-generation lines have started production in accordance with the expected date.
In late June, BOE’s 8.5-generation TFT-LCD production line was put into operation in Beijing. The BOE Beijing 8.5-generation line, with a total investment of RMB 28 billion, is the first high-end TFT-LCD production line independently built in mainland China. It mainly produces 26-inch to 55-inch displays and LCDs. TV screens, after reaching production, plans to achieve an annual output of 13 million LCD screens.
Then on August 8th, TCL Group's Shenzhen Huaxing Optoelectronics 8.5-generation LCD panel project went into production. The total investment of China Star Opto-Electronics Line 8.5 is RMB 24.5 billion. The main products are 26-inch to 32-inch, 46-inch and 55-inch LCD TV modules. The designed capacity is 100,000 per month, and the annual output of LCD TV modules is approximately 14 million. Piece.
Some analysts pointed out that BOE and TCL Group's high-generation production lines have been successively put into production to release production capacity, which has greatly increased the market supply, which may trigger an accelerated price decline, and the panel industry faces collective losses. (Editor's note: BOE has just announced that it has lost more than 2.1 billion yuan in the first three quarters.)
In the second quarter of 2011, the global top four panel companies reported a net loss of 210 billion won (approximately 1.28 billion yuan) in Samsung Display Panel and a net loss of 48 billion won (approximately 290 million yuan) in LG Display in the second quarter. AUO’s net loss in the second quarter was NT$10.77 billion (approximately RMB2.4 billion), and Chi Mei’s second-quarter net loss was NT$13.01 billion (approximately RMB2.9 billion).
How can two local companies win the game?
From the LCD panel business competition strategy, it is through the alliance with color TV companies to sell panels. Such as LG and Skyworth, Konka, Haier, Hisense and other almost all Chinese color TV companies form a partnership. Taiwan’s AU Optronics and Chi Mei’s strategies are similar.
After TCL and BOE's 8.5-generation line is put into operation, it is also necessary to form an alliance with local color TV companies. However, color TV companies are chasing the panel's price/performance ratio. Currently, TCL and BOE are not necessarily competitive because of their lack of scale advantages.
The advantage for TCL and BOE is that currently foreign high-end generation plants are postponed for various reasons. The two domestic companies can make a time lag, build a partnership during this period of time, and wait for the market to recover to form a stable customer base.
In addition, the 8.5-generation line of BOE and TCL is not simply an enterprise’s own behavior, but also a major project of China’s support for the color TV industry chain, and will be supported by the policy.
LG Display Company (LG Display Company), an LCD panel company of the Korean LG Group, announced yesterday that construction of the LG Guangzhou 8.5-generation line project had been postponed. In addition, Samsung's Suzhou project and the Kunshan project of AU Optronics have not yet finalized when the project will start.
LG originally planned to hold a ground-breaking ceremony for the 8.5th Guangzhou Line on August 30th, but in the end, LG Electronics notified the Guangzhou Municipal Government to cancel the ceremony. LG Display’s chief executive officer, Ren Yingshou, explained yesterday that the global market is not very booming, and television display sales are somewhat inconsistent with the company’s previous forecasts, thus cancelling the ground-breaking ceremony.
"We will not cancel the entire project and will be motivated when appropriate." Qiu Yisheng, vice president of public relations at LG Display, also stressed that LCD panel prices have fallen for more than a dozen consecutive months, and LCD panel prices are not seeing a rebound in the second half of this year. The prospect of the industry is more pessimistic.
At present, the weak market in Europe and the United States has caused the growth of color TV sales to slow down. Even in the Chinese market, this year's color TV sales are not as optimistic as before, and LCD screen competition is becoming increasingly fierce. (Editor's Note: The cost of LCD panels accounts for 40% of the cost of LCD TVs.)
Compared with LG's prudence, the mainland's two 8.5-generation lines have started production in accordance with the expected date.
In late June, BOE’s 8.5-generation TFT-LCD production line was put into operation in Beijing. The BOE Beijing 8.5-generation line, with a total investment of RMB 28 billion, is the first high-end TFT-LCD production line independently built in mainland China. It mainly produces 26-inch to 55-inch displays and LCDs. TV screens, after reaching production, plans to achieve an annual output of 13 million LCD screens.
Then on August 8th, TCL Group's Shenzhen Huaxing Optoelectronics 8.5-generation LCD panel project went into production. The total investment of China Star Opto-Electronics Line 8.5 is RMB 24.5 billion. The main products are 26-inch to 32-inch, 46-inch and 55-inch LCD TV modules. The designed capacity is 100,000 per month, and the annual output of LCD TV modules is approximately 14 million. Piece.
Some analysts pointed out that BOE and TCL Group's high-generation production lines have been successively put into production to release production capacity, which has greatly increased the market supply, which may trigger an accelerated price decline, and the panel industry faces collective losses. (Editor's note: BOE has just announced that it has lost more than 2.1 billion yuan in the first three quarters.)
In the second quarter of 2011, the global top four panel companies reported a net loss of 210 billion won (approximately 1.28 billion yuan) in Samsung Display Panel and a net loss of 48 billion won (approximately 290 million yuan) in LG Display in the second quarter. AUO’s net loss in the second quarter was NT$10.77 billion (approximately RMB2.4 billion), and Chi Mei’s second-quarter net loss was NT$13.01 billion (approximately RMB2.9 billion).
How can two local companies win the game?
From the LCD panel business competition strategy, it is through the alliance with color TV companies to sell panels. Such as LG and Skyworth, Konka, Haier, Hisense and other almost all Chinese color TV companies form a partnership. Taiwan’s AU Optronics and Chi Mei’s strategies are similar.
After TCL and BOE's 8.5-generation line is put into operation, it is also necessary to form an alliance with local color TV companies. However, color TV companies are chasing the panel's price/performance ratio. Currently, TCL and BOE are not necessarily competitive because of their lack of scale advantages.
The advantage for TCL and BOE is that currently foreign high-end generation plants are postponed for various reasons. The two domestic companies can make a time lag, build a partnership during this period of time, and wait for the market to recover to form a stable customer base.
In addition, the 8.5-generation line of BOE and TCL is not simply an enterprise’s own behavior, but also a major project of China’s support for the color TV industry chain, and will be supported by the policy.
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