BOE stopped investing in LCD, the biggest victim is probably Sharp Guangzhou Zengcheng Plant
The mainland panel manufacturer BOE reported that it will stop investing in LCD panels, causing industry shock. It is believed that the next panel industry is expected to improve due to reduced supply. However, for Hon Hai’s Sharp plant in Zengcheng, Guangzhou, mainland China, I am afraid that is not good news.
Hon Hai’s investment in Japan's Sharp’s panel factory SDP only recently stated that the company is located in the Guangzhou Zengcheng Panel Factory (Supervision Sakai) invested in the mainland, and its mass production schedule has been delayed by 6 Month to April 2020.
However, the market generally believes that the future destiny of the Guangzhou Zengcheng Factory will ultimately be the biggest possibility. Now even the mainland panel manufacturer BOE has to stop investing, and the current Guangzhou Zengcheng Factory does not care. It is more difficult to continue on the road to production, or to sell.
The oversupply of panels is difficult to solve. Stopping investment is just a short-term special medicine.
Industry insiders say that the biggest problem in the panel industry is still the oversupply of production capacity. In addition, it has encountered the rise of OLED panels. With the help of the flames, LCD for Samsung has almost been determined to be the next direction of the panel industry, and traditional LCD panels can only be narrowed with LCD for Samsung panels through technological advancement, and they will not be defeated.
Including the so-called Dual CELL technology launched by the mainland manufacturer Hisense a few days ago, that is, through the superimposition of two LCD panels, the color contrast of the LCD panel is more obvious, and the effect of the OLED panel can be compared in the black. It has also attracted the attention of the market, but such new applications, for the time being, still cannot effectively solve the basic problem of oversupply of LCD panels.
In other words, these oversupply capacity, unless they can effectively develop new applications, or undergo transformation, will basically become the oil bottle for manufacturers to operate without the support of lack of demand.
As for the Guangzhou Zengcheng plant, their situation is even more embarrassing. From an accounting point of view, there will be no depreciation problem before production is started, but from the production line equipment From a point of view, because the originally designed specifications were based on the SDP plan, whether it can be accepted by the buyer is a problem. Another more realistic problem is that if mass production is delayed, the equipment is bound to remain unchanged. It is hard to escape wear and tear, and it will be a more difficult situation to deal with by then.
It is understood that the next step for the Guangzhou Zengcheng plant, although it is said to the outside world that it will continue to maintain the plan to start production in April 2020, Hon Hai is also actively looking for buyers, hoping to be able to do so soon. Assist Guangzhou Zengcheng plant to sell and enter mass production.
The mainstream trend of OLED is set to become another battlefield.
Industry insiders bluntly said that the serious oversupply situation of LCD panel makers is related to the development of the Austrian aid industry by mainland officials. No one thought that within a few years, as the production capacity of land-based panel factories successively opened up, coupled with the shift in the mainstream of the market, the entire panel industry had undergone a major reversal, and these large-size LCD panels had also turned from a popular fried chicken to a hot one. Yam.
Although BOE has stopped investing in LCD panels, it has also determined that it will invest resources in the field of LCD for Samsung panels. Although the technical difficulty of OLED panels is still higher than that of LCD panels, with the investment of time and resources, No one can determine whether the technological leadership of OLED panels, including Samsung and other panel makers in South Korea, will be caught up again. At that time, if the previous situation of mainland factories madly building factories again, I am afraid it will just repeat the LCD panel. Old way! (Core Technology)
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