TrendForce: In 2021, Korean factory's large-size LCD production area will account for the market, which is expected to fall below 10%
As Samsung Display (SDC) lost to the oversupply of the LCD panel industry and the operating pressure brought about by the spread of the new crown pneumonia epidemic, it plans to close the production line. The latest research by the TrendForce Consulting Optoelectronics Research Center (WitsView) pointed out that Korean manufacturers are After the market share of size LCD panel production area will rapidly converge in 2020, it is expected that the market share will decline from 28.4% in 2019 to 20.2%. It is estimated that the production capacity of panel factories in mainland China will continue to be opened in 2021, and Samsung Display's LCD panel production capacity will be closed. It is expected that the market share of Korean panel factories will drop below 10%.
Samsung Display plans to close all LCD production lines (including the Suzhou plant) in the fourth quarter of this year, and LGD plans to close 7.5 generations in the fourth quarter, said Wang Jingyi, an analyst at TrendForce Consulting. This will reduce the production area of u200bu200bthe 7.5-generation line by 19.7% annually in 2020, and even expand to 42.2% in 2021, leaving only two suppliers, AUO and INX. SDC’s 7.5-generation line TV products mainly produce 75-inch and 82-inch TV products. In order to respond to the 82-inch demand in advance, customers will switch to the more abundant 85-inch supply. AUO and CSOT will take orders; LGD’s 7.5-generation line will mainly It produces 43-inch IPS TV panels. After the production line is closed, the orders will be shared by the Mianyang plants of BOE and HKC.
The closure of SDC's 8.5-generation line capacity will reduce the production area of u200bu200b8.x-generation lines by 3.2% annually in 2020, and a further reduction of 6.3% in 2021, which is relatively slower than that of 7.5-generation lines. The 8.x generation line will gradually have Huike's new production capacity added.
While Korean factories have substantially converged their large-size LCD panel production lines, although other panel makers continue to have new production capacity, it still makes it impossible for 2020 and 2021 to continue in 2018 and 2019 as a whole The trend of substantial growth in production area is expected to be the same in 2020 as in 2019, and to decline by 0.9% in 2021 compared with 2020.