China's large LCD panel companies need a few

As from the BOE Technology Group Limited (BOE Technology Group), Huaxing Photoelectric Technology Co., Ltd. (Shenzhen China Star OptoELectronics Technology), Kunshan Longfei photoelectric Co Ltd (Infovision Optelectronics Kunshan) released data to see that at present to the seventh generation production line (Chinese (7G) the floor size is 1950mm * 2250mm) and eighth generation (8G) production line (the floor size is 2200mm * 2500mm) investment plan large-scale equipment continuously. South Korean manufacturers and manufacturers in Taiwan are also increasingly active investment in the mainland.

This is a great move towards China's domestic demand. In the growing demand in China, is expected to 32 inch LCD panel will continue to be the mainstream, in 2013 will require about 43 million years. Although the need for large screen LCD panel with a high yield of seventh ~ eight generations of large-scale equipment investment, but really need to invest a few? According to the demand of the Chinese market, we will inspect the quantity of the factory.

We will issue the "according to the FPD balance of supply and demand / investment trends survey report" (Ji Kan), due to large-scale investment in equipment and the high-profile seventh generation glass plate, can cut 12 pieces of 32 inch LCD panel, and the eighth generation of glass plate, can cut 18 pieces of 32 inch LCD panel. Therefore, China needs more than 30 inches in the LCD panel cutting efficiency of the best production line of the eighth generation.

The following figure out the most likely smoothly seventh and eighth generation line of BOE, Huaxing Power, CMO (Chimei Innolux), AU Optronics (AU Optronics) this four vendors production capacity. The rate of finished products are assumed to be 90% in 2013, according to the capacity of the 32 inch LCD panel conversion, will be more than 5 million pieces per month.

When the panel aimed at the Chinese market, China's domestic demand for 32 inch LCD panel demand (below the dotted line), including only the seventh generation, including the production line of the four manufacturers can be fully satisfied. If it is the eighth generation of investment, just build three production lines to meet the needs of China's domestic market in 2013.

Seventh and eight generation LCD panel supply forecast (in accordance with the conversion of 32 inches) data provided by DisplaySearch

If there are five production lines in China that can get a large investment license, then the supply will be far more than domestic demand. Therefore, from the point of view of avoiding risk, the government will give priority to the development of domestic panel manufacturers. For large scale new investment proposals from abroad, it is necessary to take strict measures to restrain investment.

Major LCD panel manufacturers plan to actively invest in China through a large scale, to local production transfer, in order to improve profitability. However, if coupled with SHARP's Nanjing plant, South Korea's LG display factory in Guangzhou as well as South Korea's Samsung Electronics Factory in Suzhou and other plans for China's domestic demand, will produce a larger surplus.

Through China's seventh ~ eight generation production line investment, is expected to supply a large number of 32 to 42 inch LCD panel. In the end, China's LCD TV screen will be greatly accelerated, the panel will be a lot of consumption, while the rest will be exported to other countries. It is undeniable that this will accelerate competition in foreign markets, resulting in a sharp decline in production costs and sales prices will affect the world. So, China's domestic large-scale investment can really be consistent with the profitability of the business? The major LCD panel manufacturers operating judgment is being tested.