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Company News >> Korean media: Chinese panel makers reduce LCD production, Korean companies are expected to get a respite 12th,Dec,2019

According to BusinessKorea reports, since the second half of this year, Chinese panel manufacturers have begun to reduce liquid crystal display (LCD) output in order to curb continued decline in LCD panel prices. Based on this, South Korean panel manufacturers are expected to get a respite, but it cannot be ignored that Chinese companies are rapidly surpassing Samsung Electronics and LG Electronics in terms of OLED technology.

Since the second half of this year, Chinese panel makers, which dominate the global LCD market, have reduced LCD production and gradually moved to the OLED market. Among them, BOE, the world ’s leader in TV panel shipments, has reduced the output of its 10.5 generation LCD production line by 25% since July; Huaxing Optoelectronics and Huike also reduced the output of the 8.5 generation LCD production line by 10% and 20%, respectively. .

Market observers expect prices for large-size LCD panels to rebound from early next year. Although the current average price of LCD panels is still lower than the cost of production, Shinhan Investment Corp. reported in a December 2 report that as LCD supply conditions return to stability, panel prices will start early next year. Began to improve.

The report states, for example, that the price of 32-inch TV panels shipped in open cell (semi-finished products without backlight module) will increase by 29% from 31 dollars in December this year and reach 40 dollars in September next year. And LCD TV panel prices are expected to rebound from January next year, and the upward trend will continue until September next year.

For Korean panel makers that have suffered severe losses, this is undoubtedly good news, especially for LG Display, where 80% of its sales come from LCD monitors. If LCD TV panel prices stop falling and rise, the company's profitability will likely increase.

However, the report also pointed out that although Korean panel makers are expected to benefit from this, it is still necessary to remain vigilant that Chinese companies are rapidly surpassing Samsung Electronics and LG Electronics in terms of OLED technology.