According to the latest panel price data of WitsView (late June edition), the price of large-size TV panel started to rise after stabilizing in early June. The average price of 32 inch TV panel was reported as US $1 (up 3.1%), the average price of 55 inch TV panel was reported as US $2 (up 1.9%), and the price of remaining sizes such as 43 inch and 65 inch TV panel was the same as that in early June. In addition, the price of desk display panel and notebook panel also showed an overall upward trend.
Market analysis suggests that the demand for TV sets is driven by the mid year sales promotion in Chinese mainland, and the demand for TV panels is strong in the short term. Office at home and online education caused by the epidemic also increase the demand for Zhuo Xian and notebook. On the whole, the price rise is sustainable in the short-term 1-2 quarters.
The display panel industry originated from the United States, and the leading power was handed over to Chinese mainland after the Japanese and Korean Taiwan. In recent years, with the continuous release of production capacity of high generation production lines in mainland China, mainland enterprises have been gaining a stronger voice in the field of large-size LCD panels, and have become the largest LCD panel production base in the world.
At the beginning of 2020, the LCD panel industry has begun to show an oligopoly pattern. From the change of market share of large-size LCD in 2019-2020q1, it can be seen that the competition pattern of global LCD panel industry has begun to usher in great changes.
BOE, Huaxing optoelectronics, shentianma, Huike and China Electronics Technology Co., Ltd. have grown into the world’s leading panel manufacturers. According to the data, BOE is the number one TV panel manufacturer in the world, Huaxing optoelectronics is the fourth, CLP panda is the seventh, CLP rainbow is the eighth, and Huike is the ninth.
According to QQ statistics, the volume of LCD panels shipped by Chinese mainland companies accounted for 55% of the global share in the first quarter of 2020, and the proportion of 2019 was 46%. Among them, the proportion of large-size LCD shipping area of mainland manufacturers BOE and csot was 18.98% and 17.65% respectively, which ranked the top two in terms of shipping area and was far ahead of other competitors. In addition, in the first quarter, the total global LCD panel shipments reached 63.03 million.
With the withdrawal of the capacity of Japan and Korea and the decline of competitiveness of small panel factories in mainland China, and the gradual closure of LCD capacity by LGD and Samsung, the market share of Chinese mainland manufacturers will further improve, and the industry share is expected to continue to be undertaken by BOE and Huaxing.
The upstream industry chain of LCD panel includes glass substrate, color filter, polarizer, liquid crystal material, driving IC, backlight module, etc.
According to Qunzhi consulting research, the localization matching rate of China’s display upstream materials is 55%, and the localization matching rate of upstream equipment is about 15%.
In 2019, the output value of the global display industry is about US $1972 billion, of which China’s display device (panel) output value accounts for about 37% of the world’s total, while upstream materials only account for 15% of the world’s total, and upstream equipment only accounts for 6% of the world’s total.
At present, the main manufacturers that can provide glass substrates on a large scale in the world are Corning (US), Asahi nitzsch (Japanese), electric nitzsch (Japanese) and Anhalt. China’s domestic glass substrates are in short supply and still need to be imported in large quantities.
The supply of color filters, polarizers, liquid crystal materials, driving ICs and organic light-emitting materials are also mainly concentrated in a few foreign manufacturers.