BOE, Taiwan enterprises attack foreign 8 generation line collapse

August 2009, is the 8 generation of foreign LCD panel line defense almost a full collapse of the month.

LG has signed an investment agreement with the Guangzhou municipal government in late August. August 31st, on the same day the 8 generation of the line in Beijing, Yizhuang Development Zone on the same day, SHARP and the Nanjing municipal government, China Electronics reached the line of the second generation and the 8 generation of online collaboration surfaced.

Samsung has basically finalized cooperation with the Suzhou municipal government, waiting for approval. Tianjin Samsung Electronics display Co., Ltd., a manager said, in addition to the company is to promote the LED LCD TV, and then to build a multi billion dollars in the front panel of the 8 generation line in Suzhou.

Foreign LCD 8 generation line has not entered the Chinese history in Beijing Yizhuang BOE 8 generation line started immediately after the near end, China dragged two or three years of high generation LCD panel production line at the BOE "first shot" after the start of the "avalanche", the China already in the planning blueprint for the layout of the high generation line suddenly between so clearly.

Pierce the windows of paper

China into the high generation LCD panel production line work has already begun in 2005, but due to various reasons, by the end of 2006, the SASAC BOE, SVA, dragon brewing promote 3 to 5 generation line restructuring plan for various factors of bathing, thereafter, each of their own development, BOE 6 generation line in Chengdu launched later, Ivo financing since the 6 generation and the 7.5 generation line, waiting for the price and sell up.

From 2006 to 2008, and then to the year of 2009, China wants to build a high generation line, but because of technology, the government's determination and other reasons. Foreign manufacturers try to delay the panel LCD panel production line China upgrade process, until 2009 broke the BOE will in Beijing SASAC under the support of investment of 280 million to build eighth generation production line, the situation seems to be turning.

An insider revealed that the BOE has reached a cooperation with the two or three well-known domestic color TV manufacturers, the establishment of the module will be around the plant, then the product can cover the northern region. China Video Industry Association Straits FPD industry promotion working group office director Sun Xinguo said that the high generation line is a strategic choice, after the BOE 8 generation line to start, Ivo still relevant state departments for approval, may be the 7.5 generation, 8.5 generation is also possible.

Insiders revealed that Samsung has negotiated with the Suzhou municipal government, but has not signed a contract, because the South Korean government to wait for approval, with a total investment of $about 3000000000. The reason why Samsung chose Suzhou, in addition to the 8 line of the BOE has begun to start, the Suzhou municipal government is also an important factor in attracting samsung.

Suzhou city government to give Samsung the greatest degree of freedom in the city, not wholly owned or close to the controlling stake in the sole proprietorship, the Suzhou municipal government shares accounted for little. There are other reasons, Samsung has built a modular factory in Suzhou, if the front 8 generations of the line is also built in Suzhou, nature can open up the industry chain and downstream. Samsung Industrial Park is more modern, perfect, and there are many preferential tax conditions, is a comprehensive factor in the Samsung settled in Suzhou.

August 31st, the Nanjing municipal government spent 13 billion 800 million dollars in exchange for SHARP abandoned the production line of the second generation of liquid crystal line and a commitment to help build the Nanjing 8 generation line. The LCD panel in 2004 Japan Kameyama 6 generation line to produce 26 inch, 32 inch small size, SHARP has been eliminated -- it already can not adapt to the current 40 inches above the mainstream LCD TV needs to stop production in January this year, SHARP began to shift the focus to the production of the second factories in Japan Kueishan the 8 generation line, at the same time, the company's 10 generation line will be started in October put into production.

A person familiar with the matter said that SHARP's 6 generation line is much more expensive than the outside world's $13 billion 800 million. This old line through the assembly and disassembly bumps into China can really run freely, high yield is a big problem. The second is the high maintenance costs, many parts, products cannot open procurement, only by some suppliers for expensive.

Most of the industry for China electronics and its Nanjing panda Information Industry Group Limited (hereinafter referred to as "Panda") and SHARP set up a joint venture to promote the 8 generation line protocol misgivings, in their view, the total investment of 30 billion yuan, monthly production of 90 thousand pieces of glass substrate project is just a "it's intention is not suspended, spectrum". Will they be able to form a joint venture this year? 2012 to achieve mass production?

Guard against Taiwan panel?

In addition to Samsung, SHARP, in July, LG and the 8 generation of Guangzhou line negotiations by the media reports, LG company CFO said it was considering the establishment of the Chinese version of the panel in the 8 generation plant, involving an investment of $2 billion 550 million.

"BOE is a stimulating factor, the key is the Taiwan business decisions. Century electrical network chairman and CEO Wang Zhiquan said, Taiwan, Japan, South Korea's competition and cooperation is very subtle, the industry boom is critical, but also look at the level of cooperation between Taiwan and mainland enterprises. But if the 8 generation of the line does not start the BOE, South Korea's line of the next generation of at least three to five years will come in.

A panel of executives also hold the same view, he believes that the Samsung, SHARP and LG in fact, in order to prevent the composition of more manufacturers in Taiwan. BOE, dragon high generation line will promote the Taiwan panel into China to set up factories, enterprises in Japan and South Korea fear most is Taiwan panel makers.