Organization: Samsung Display or close LCD production line ahead of schedule
On March 30, CINNO Research, a market research organization, released a report saying that SDC (Samsung Display) is accelerating the process of shutting down LCD production capacity and converting to LCD for Samsung production due to the impact of the new crown pneumonia epidemic. The shutdown plan may be advanced to the fourth quarter of this year. , Involving three large-size LCD panel factories in South Korea, as well as the 8.5-generation line in Suzhou, which has not reported the closure of the factory before. In 2019, SDC's large-size LCD production area of u200bu200b7th generation and above in South Korea accounted for approximately 12.2% of the world's total. Together with the 8.5th generation line in Suzhou, the proportion increased to 15.7%. Closing factories ahead of schedule is bound to have a huge impact on the global panel supply structure.
CINNO Research believes that SDC’s early closure of factories means that the global large-size LCD panel will accelerate from competition between China and South Korea to a dominant position in mainland China. Among the global LCD production lines above 7th generation, the percentage of production area of u200bu200bmainland Chinese manufacturers will increase from 44.8% in 2019 to 53.3% in 2020. With the gradual completion of SDC plant closure, by 2021, this proportion will jump to 65.3%.
At a large-scale application online sharing meeting attended by a reporter from China Securities Journal on the afternoon of March 25, some experts also believed that due to the epidemic, South Korea’s SDC and LG Display (LGD) may Shut down local LCD production capacity in advance.
According to media news on January 7, LGD CEO said during the CES exhibition that due to the drop in LCD prices and the risk of global oversupply, LGD will stop the production of domestic LCD TV panels in Korea at the end of 2020.
In late December 2019, Zhang Hong, TV Research Director of Qunzhi Consulting, said at the media exchange that SDC and LGD will continue to reduce the output of LCD TV panels. Among them, the LCD TV panel supply area is expected to decrease by 35%; Samsung plans to continue to close the 8.5-generation line, and it is expected that its LCD TV panel supply area will be reduced by about 28%.
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