Frbiz.com Analyzes Mainland China Lcd Panel Production Overcapacity Appear Hidden Worry
Since the six-generation line of Whispering Nanjing Sharp
, foreign factories in mainland China, the pace began to speed up the panel. LG announced that it will in Guangdong in the eight-generation LCD panel plant set up shortly after, Samsung, recently announced a joint venture in Suzhou, voted to build 7.5-generation LCD production line project. Previously, BOE, Long Fei photovoltaic panel production line, etc. has started in various places to start.In this wave of investment boom, the LCD panel prices have surged since the beginning of the year after the turning point occurred in October, an oversupply of LCD panels started to show trends.
Panel rise of investment boom
Last Friday, the world's largest LCD panel maker Samsung Electronics announced plans to build a joint venture in Suzhou, 7.5-generation LCD panel plant and the investment scale of about 2.23 billion U.S. dollars. Samsung Electronics spokesman JamesChung said the construction of a joint venture factory in Suzhou, is mainly to develop the Chinese mainland for more than 40-inch flat-panel TV market.
Samsung did not disclose financial details of the plan, mainland China joint venture partners, as well as companies in the joint venture's ownership percentage, but people familiar with the Yangtze River Delta optoelectronics industry insiders speculated that Samsung panels in Suzhou, a joint venture to build production line, the Chinese joint venture those who might be "under the Suzhou Industrial Park venture capital firm."
Research firm DisplaySearch, said DavidHsieh, vice president of the Greater China market, Samsung Electronics is an important reason for this decision took into account the duty factor is that - there is news that the Chinese government will present 26-inch panel size and above the tariff level from 3 % to 5%.
"Samsung plans 7.5-generation line will not only lock the TV panel area, also taking into account the display, laptop computer screens and other IT product markets", DisplaySearch China, Zhang Bing, manager of the "Daily Economic News" said that Samsung is only a few months, the Chinese mainland LCD panel in the latest investment in a roster. Samsung Electronics announced in the joint venture plans two days ago, South Korean panel giant LGDisplay (hereinafter referred to as LGD), said Guangdong Province in China to form an eight-generation LCD panel joint venture plant in developing the scale of investment of 40 billion U.S. dollars.
Even earlier, Sharp, six-generation line of the transfer of Nanjing Panda CLP and to plan with a joint venture to build eight-generation lines, BOE 8 on behalf of the line, Long Fei optical 7.5-generation line in Beijing, Kunshan start BOE 6-generation line in Hefei start ... ... can be described as the domestic investment boom in wind and water panels.
Price curve appears inflection point
Line in mainland China's flat panel industry behind the boom, panel prices also reveals a turning point in the curve mean.
Year-to-three-quarter, LCD TV panel prices rose an average of more than 30%, of which 32 inches is the most, from the original 130 U.S. dollars up to the end of September of 215 U.S. dollars. This is mainly due to the consumption of pre-inventory, panel plant, as well as the upper glass substrate plant capacity have tightened.
So fierce or so large panel plant to recover rapidly and repeatedly after the second quarter reached a new high on operational data. However, after entering in September, this trend began to slow up wave of price hikes trend stops, finally emerged in the inflection point in October.
DisplaySearch released as of October 19 of the panel price trend shows that since September 21 has been a month 26 ~ 46-inch mainstream TV panel prices generally fell by 5 ~ 10 U.S. dollars. Among them, 32-inch, 37-inch cut prices five U.S. dollars, the smallest; 42-inch, 46-inch TV panels decreased 10 U.S. dollars.
Skyworth Group Vice President Yang Dongwen that price down behind the LCD panel supply and demand reversal. Wave of cuts earlier this year, Corning, Asahi Glass and other major upper glass substrate supplier was closed for nearly 1 / 3 of the melting pot, but in the third quarter, basically to make return to the past concept.
LGD Global CEO Kwon Young-soo said recently that the current global LCD panel has a slight surplus next year, China will be to determine the relationship between demand and supply of LCD panels and the panel industry, the pattern of the key.
Industry research firm WitsView panel, said display panel from September onwards demand is very weak, notebook panel shipments also fell in September peak. Overall panel prices started Zoudie in September, the next few months will continue to show downward trend in pricing.
An oversupply of competition
Supply tends to excess, high starting investment boom - in these two context, the panel industry, the competition becomes increasingly fierce.
DisplaySearch report showed that the second quarter of this year, Chi Mei occupy the Chinese mainland before the six machine brands shipments 33.1%, continuing to maintain a leading position; Samsung Electronics, the main supply to the TCL, the second-quarter shipments in China region market share increase 21.9%; AU through the TCL and Haier supplier shipments market share reached 16%. This has changed the way in the Chinese market had LGD the leading pattern.
"This is a race to the field of LCD panels," research institutions, research director of Shui Qing Mu Hua ZHOU Yan-wu thinks that South Korean panel giant is using its immediate advantages, to invest in order to squeeze its competitors. "In fact, Samsung's DRAM memory chips in the field of exactly the same way, but also through the market strengths and investment capacity advantage against opponents."
Insiders are concerned, this trend in the Chinese mainland investment boom or cause panel oversupply on the industry, the healthy development of the negative, but Bing believes that China's flat panel industry first concern should be to maintain their competitive interests, rather than capacity whether the surplus, "a competitive industry in any stage of maturity always oversupply situation, this is not terrible."
by: Frbiz