LCD made in China worry

SVA and BOE this year two fifth generation TFT-LCD production line have mass production, Kunshan Ivo fifth generation production line are wildly beating gongs and drums in preparation...... The construction of TFT-LCD production line in our country has attracted much attention, and the TFT-LCD industry in our country has seen an unprecedented active scene.

Liquid crystal flat panel display (LCD) over the past few years with a growth rate of more than 30% is known as the global star industry. By 2000 its market of more than 20 billion U.S. dollars, this year will reach a scale of $47 billion 600 million, its growth rate is not as high as the early development of the semiconductor industry. China liquid crystal optics and Optoelectronics Industry Association branch chairman Dong Xuwang said that China's LCD industry after several big wave of investment is becoming a global LCD Industry fourth power, South Korea and Japan and China's Taiwan Province, a situation of tripartite confrontation of the situation is being broken, the rising power of china.

Investment overheating?

Since 2004, the global TFT-LCD market oversupply situation, the sharp decline in product prices, resulting in a large number of enterprise losses. SVA, BOE has not spared, reported that the first half of this year, the two companies there are different degrees of loss. At the same time, the industry continued to spread around the country claimed to be about to launch the 5 generation and more than 5 generations of TFT-LCD production line of the message, which led to a wide range of domestic and foreign industry discussions, investment overheating argument. From the current analysis of the actual investment, it is concluded that the domestic investment in the overheated TFT-LCD industry conclusion is too early." Shanghai Guangdian electronic Limited by Share Ltd chief engineer Jin Song said, "with the in-depth understanding of investment companies and Development Zone of TFT-LCD industry and technical barriers and industry risk, may reconsider the TFT-LCD industry investment."

TCL group of Industrial Research Institute deputy chief engineer Zhu Changchang that, in the world, the formation of TFT-LCD investment capacity to grow faster than the market growth rate, resulting in a rapid decline in product prices, so there are signs of excessive investment. "In China, the current TFT-LCD industry has just started, the problem is the TFT-LCD industry is capital intensive and technology intensive industry, need to have reliable sources of technology and continuous large-scale investment in the ability to enter the TFT-LCD industry, investment will be in danger of being eliminated, so the domestic enterprises to invest in TFT-LCD to be very careful." Zhu Changchang said.

"From the global industrial development, the current investment more than 5 generation TFT-LCD production line is wise; from China's TFT-LCD industry development, although there are technical and financial difficulties, but it is of strategic significance, not the so-called hot investment." Shenzhen Tianma microelectronics chief engineer and director of research and development center Li Shuxin think.

At the same time on the line, the rational thinking of the situation of the company after the investment of large sums of money, will contribute to the healthy development of China's TFT-LCD industry.

Development of the 5 generation? Support the 6 generation?

In 2004, SVA, BOE 5 generation line or still have not yet entered the equipment installation and commissioning, there are a lot of people on the There were many discussions. The 5 generation line, to 5 generation line has not been built already behind. In this regard, Tsinghua University Professor, advisor of Beijing Qinghua LCD Technology Engineering Research Center Gao Hongjin believes that the 5 generation line and the 6 generation line and 7 generation line and the 8 generation line, it is difficult to say who is advanced, who is behind, the key lies in the product positioning. According to reports, the 5 generation production line is mainly used in the production of PC screen, the 6 generation production lines and more than 6 generation production line is mainly used in the production of TV screen. If there are technical differences between different algebra, it is better to say that the difference between the final product. For an industry's new entrants, the use of existing mature technologies and markets, apparently more successful than the development of new technologies and new markets. This is particularly important for TFT-LCD's high investment, high technology and high risk industries. Therefore, the 5 generation line is a reasonable choice for the latecomers.

Zhu Changchang said: "the objective analysis has built 5 generation line of business expansion, is the 5 generation line or a new 6 generation line, from a market point of view, is the enterprise according to the decision of its market strategy, from a technical point of view, mainly depends on the degree of master of technology. If you can from the 5 generation line operation or expansion of the production process of the 5 generation of digestion and absorption of key technologies, which can independently design and construction of the 6 generation line, rather than the introduction of the new, it is a great success, should be encouraged. As for the new entrants, what line depends entirely on their own market positioning and access to capital and technology sources."

Investing in a generation line is a question that should be carefully considered, but not as advanced as possible. At present, coexist in the Taiwan province of China 4 generation line, 5 line, 6 line, 7 line, the relevant media reports, the original has only 4 generation line of CPT is this year's fastest growing companies.

Targeting high definition TV, taking into account the desktop computer, build 6 generation line is a choice, if targeting 40 inches high definition TV, build the 7 generation line may be better. In fact, China's investment in the generation of production lines are designed to reduce the cost of production of TFT-LCD, from this point of view, the purpose of which generation of investment lines are consistent.

Experts believe that the technology and capital investment TFT-LCD production line must be taken into account when the problem, in contrast, is more important in introducing the production line technology and talent, can complete the introduction of mature production technology determines the success of the project.

Shake the industrial structure?

China's TFT-LCD industry development today, the global industry, it can be said