No need to discard the domestic LCD! The truth that 60% of South Korea’s TVs use LCDs made in China and Taiwan
According to the Joongang Daily News, the prices of display makers in China and Taiwan are changing the TV production models of South Korea’s Samsung and LG Electronics.
It is understood that the LCDs produced by Samsung/LG's panel subsidiaries have gradually been replaced by low-priced LCDs made in China and Taiwan, which has also put their own panel manufacturers Samsung Display and LG Display in trouble.
According to IHSMarkit, Samsung’s TV shipments in 2019 were 44 million units. Among these 44 million units, the LCD supplied by Samsung’s subsidiary Samsung Display accounted for only 37.7%, or 16.6 million units. The remaining approximately 60% (61.4%) will be purchased from panel makers in China and Taiwan.
As far as Q1 (January-March) in 2019 is concerned, among Samsung's TV sales (10.33 million units), Samsung’s display supply accounted for only 37.1% (3.838 million units), with panels from mainland China and Taiwan The proportion of plant supply reached 62% (6.408 million units). For example, Samsung’s high-priced product 'QLED TV' uses Taiwan’s AUO LCD.
The situation of LG Electronics is similar to that of Samsung. IHS Markit pointed out that in Q1 of 2019, LG's LCD TV sales (7.896 million units) accounted for less than 50% and only 49.3% of LCD TVs supplied by LGD.
Shinhan Financial Investment pointed out, 'Currently, China has three 10.5-generation LCD production lines starting to produce, and South Korea’s 8-generation LCD production lines have lost their competitiveness.”
At the end of August, there was even news that the LCD industry situation continued to deteriorate, and Samsung Display would stop operating part of the L8 production line in the near future.
According to the Korean technology media 'etnewsAfter Chinese companies launched 10.5-generation panel factories and smoothly increased their operating rates, the prices of large panels over 65 inches began to continue to fall. Not only that, Samsung Electronics’ original LCD customers also began to prefer lower-priced and comparable-quality Chinese products. Therefore, in the first half of the year, Samsung Display began to experience operating losses in the large-scale LCD center business, with losses amounting to about 40-50 billion won.
Samsung Electronics believes that China’s entry into the large-scale panel market will affect the competitiveness of South Korea’s high-end products, and it will be difficult to maintain profits in the future, leading Samsung Electronics to implement its LCD shutdown plan ahead of schedule.
In addition to Samsung, in early August, LGD also reported that due to the low price offensive of Chinese manufacturers, LGD is considering discontinuing the current Paju P7 and P8 in the LCD business, which is deteriorating profitability. Part of the production line is shifted to the LCD for Samsung production line.
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