Crash once a year! LCD production capacity surges, TV prices fall

by:Kimeery     2021-06-04

I don’t know if you still remember that the price of LCD panels began to fall in the second half of last year. With the rapid expansion of China’s LCD panel production capacity, the global LCD panel prices continued to fall and the TV industry experienced industry losses. The production capacity of LCD panels continues to expand, while the market demand for large-size panel products is relatively fixed. South Korean manufacturers have closed many production lines last year and are not competing with Chinese LCD production lines for the market. Japan’s LCD panel industry is the worst. South Korea has generally bet on LCD for Samsung panels or Micro LED display technology in order to avoid the impact of Chinese LCD panels. There are also technological advantages, but the entire industry is facing the dilemma that it is difficult to find a next home and the upstream capital chain is problematic.

In addition to Sony’s main high-end LCD TVs in Japan, other Japanese brands have also laid down their positions to compete for the low-priced market, but this cannot compete with brands such as Xiaomi, not to mention China’s other brands. Hisense, TCL and many other brands.

In the foreseeable future, Japan’s LCD industry, including high-end LCD for Samsung displays, will encounter difficulties. Although Canon TOKKI still maintains an advantage on the production side, it has lost ground on the product side. Japan used to be the birthplace of liquid crystals, and it is also the birthplace of liquid crystal commercialization. Now it is really speechless to encounter such problems.

The market report shows that the price drop of large-size TVs is related to the substantial increase in LCD panel production capacity of Chinese manufacturers. BOE, the largest panel manufacturer in China, has surpassed LG to become the world's number one. Large LCD suppliers, together with China Star Optoelectronics, Tianma Microelectronics, Visionox and other domestic panel companies, domestic manufacturers will account for more than 50% of the global LCD production capacity.

The current situation is that the huge increase in LCD production capacity has caused an avalanche of global LCD TV prices, but the question that follows is how Chinese panel companies themselves can digest the huge output.

Source: Phoenix Net

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