LCD does not make money, Korean factories may continue to close LCD panel production lines below the 8th generation

by:Kimeery     2021-06-06

The panel factories in mainland China are blooming everywhere. With the close construction and production of multiple high-generation lines such as the 8th and 10th generations, the price of LCD panels has fallen sharply compared with previous years, and this year, mainland China's 10-generation and above production will enter The peak production period has had a greater impact on Korean panel makers. Recently, according to the observation of China LCD, in the short term, Korean factories may continue to close down LCD panel production lines below the 8th generation.

Industry analysis believes that LCD technology is quite mature, and now we can only rely on the quantity and price to maintain their respective advantages, while OLED technology barriers are high, and key core technology equipment is hard to find, such as large-size OLEDs. So far, apart from LGD, no other panel factory can achieve mass production, which helps to distance itself from competitors.

Currently, Samsung OLED panels account for three-quarters of the overall display panel revenue, which is equivalent to three times that of LCD panels. It has become the main source of profit for Samsung Display. If the LCD panel business is at a loss or competition If the strength is weak, it is better to close the factory directly and concentrate all the resources on the more profitable OLED panel.

In order to ensure the competitive advantage of LCD for Samsung, Korean factories will focus on cultivating LCD for Samsung in the future.

At present, LGD is actively expanding OLED production capacity and gradually closing down low-generation production lines. For example, LGD closed the 5th generation TFT-LCD production line earlier and sold it to Chinese manufacturers. At present, this production line has been Settled in Zhengzhou, Henan (for details, please refer to the report of China LCD Network on August 6-Zhengzhou Huarui Optoelectronics introduced the fifth-generation TFT LCD panel production line from South Korea's LG. It is planned to be officially constructed in September). LGD Guangzhou’s 8.5-generation OLED factory is expected to start trial production in February next year, and its production capacity will be further expanded in the future. LGD's E3 and E4 plants in Paju, South Korea have a monthly production capacity of 70,000 pieces, and the Guangzhou factory has a monthly production capacity of 60,000 pieces. If nothing else, by the second half of 2019, LGD's total OLED panel production capacity will reach 130,000 pieces.

At present, the LGD OLED business has built a complete system from development to production to sales, and production efficiency has been greatly improved. According to data from LGD, LGD's large-size OLED shipments exceeded 1.3 million units in the first half of this year, which is more than doubled compared to the 600,000 units shipped in the same period in 2017. LGD expects that this year's OLED business will turn around for the first time.

Samsung has the world's strongest advantage in the small and medium-sized OLED panel market, and is far ahead of other panel manufacturers in terms of technology and production capacity. However, other panel makers are also accelerating their entry into small and medium-sized OLEDs, which makes Samsung feel a sense of crisis. Therefore, Samsung hopes to close production lines or upgrade technology to increase yields in order to consolidate the dominant position of small and medium-sized OLEDs. It recently closed a 7th generation TFT-LCD production line (L7-1), which was closed at the end of 2016 and rebuilt to produce G6 flexible LCD for Samsung screens.

Some time ago, or due to the fact that Apple’s iPhone X sales were not very good, Samsung once suspended the trial production of this factory, but Samsung said recently that it plans to start the factory again in October. To meet the increasing demand of orders.

In fact, in addition to Korean factories, Taiwanese factories also intend to shut down low-generation LCD panel production lines. At present, the most 5th and 6th generation factories are concentrated in Taiwan, China, and the mainland panel production lines are blooming everywhere. Squeezed the living space of the low-generation production lines of Taiwanese factories.

Xie Qinyi, senior research director of IHS, believes that with the opening of the mainland's 10.5 generation panel production capacity, the panel industry will face greater pressure on the operation of the panel industry. Some old-generation production lines with old equipment and low production efficiency will inevitably be forced to transform, even It is closing the factory. This shows that the future display market pattern is likely to trigger changes again.


Kimeery (HK) Industrial Limited thinks that effective market design can improve liquidity, efficiency, and equity in markets.
The Global mobile phone lcd display Leader. Kimeery (HK) Industrial Limited will build a unique portfolio of Kimeery and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the mobile phone lcd display company most customer turn to worldwide.
An easy and inexpensive mobile phone lcd display solution can be easily obtained now through purchasing a mobile phone lcd display mobile phone lcd screen wholesale online. Find your solution at Kimeery Phone LCD, your demand will be satified.
What Kimeery (HK) Industrial Limited discovered was that innovation occurs when business models match up with one or more of the mobile phone lcd display where technological advances overlap with market needs, thus resulting in growth and transformation.
When you choose to buy instead of lcd screen factory, the money you save may allow you to buy multiple other necessities, more than you had initially planned on buying.
Custom message
Chat Online 编辑模式下无法使用
Chat Online inputting...
Thank you for your enquiry. We will get back to you ASAP