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Home > Industrial News

Small and Medium Size Withdrawal Tide in LCD Panel Knockout Stage

Author : lcd panel factory

Update time : 2019-10-16 10:01:00

The knockout stage of the LCD panel industry continues, especially the small and medium-sized lcd panels set off a wave of exit. Huaying announced the liquidation a few days ago. The Japanese panel factory JDI must also rely on foreign aid to survive. Even the Korean panel factory LGD can not afford to lose money. Intentionally fade out of the small and medium size lcd panel business. Small and medium-sized lcd panel market concentration increased, leaving only Samsung and BOE, Tianma dominate the market.

LTPS panel, AMOLED panel production capacity in mainland China, and smart phone market into the plateau period, brand market concentration has increased, lcd panel factory bargaining power reduced, resulting in the price of small and medium-sized panels collapsed last year. Last year, mobile panel prices fell by more than 20%. In the first half of this year, mobile phone panels still fell by as much as double digits. Small and medium-sized panel factories have suffered long-term losses, and there has been a wave of exit this year.

At the end of last year, Huaying broke out a financial crisis, although it claimed to be reorganized, but because of its poor physique and difficult to reverse its long-term development prospects, the reorganization was rejected by the court, and finally it was sadly declared bankrupt and embarked on the road of liquidation. To become the first exit of this wave of lcd panel factory.

JDI customers are concentrated in Apple, but in the past two years, Apple has shifted its strategy, shifting its flagship aircraft to AMOLED panels, leaving JDI, which has lost money for years, unable to survive and seeking external funding. JDI, with total assets of 410.5 billion yen and liabilities of 487.7 billion yen, is already insolvent, but the Japanese banking consortium has extended its financing quota for JDI until the end of the year, giving JDI a respite. However, after TPK-KY Huanhong announced its withdrawal from the JDI investment case, the Castrol Fund also announced its withdrawal a few days ago, and it is worth observing whether external funds can be rescued in real time.

LGD has always been Apple's main panel supplier, but Apple's switch to AMOLED, and hundreds of billions of yuan in investment in AMOLED panels also overwhelmed LGD. The expansion of losses in the first half of this year not only triggered an internal personnel earthquake. But also decided to fade out of the small and medium-sized panel and Apple supply chain.

However, the global smartphone market, which has more than 1.3 billion units a year, has always been a leader in small and medium-sized panel technology, which has always been the first to be used on smartphone panels. From the past LTPS panel, and even the rapid rise of AMOLED panel in the past two years, they are first imported into high-order smart phone applications, and then into middle-level mobile phones, and then extended to high-order laptops, high-order tablet computers and in-car display applications. The withdrawal of a number of panel factories from the mobile panel market will affect the investment in high-level panel technology, as well as the operation of other small and medium-sized panel application markets.

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