The global panel industry is facing a competitive situation

In recent years, the TFT-LCD panel industry investment amount of huge capital expenditure in Taiwan, South Korea, the first and second tier manufacturers panel panel manufacturers have emerged distinct strength of the situation, the development of the situation in the future will make the first tier manufacturers financing expanding more advantages, relative line panel factory in working under pressure, there will be more and more opportunities to consolidate.

According to well-known display market research firm DisplaySearch statistics, from 2004 to 2006 3 years, the global panel factory capital expenditures of approximately $30 billion, equivalent to NT $600 billion, of which Taiwan panel factory in the 3 years the capital spending will account for the total expenditure of more than 50%, the amount will be called the crown of the world.

In Taiwan panel industry to invest large sums of money, but each panel manufacturers operating performance is not the same, in the first half of this year the display panel factory released financial report, the amount of the first half of the Taiwan 5 panel plant loss of about NT $28 billion 500 million, but the CPT, color crystal, wide bright 3 second tier manufacturers accounted for 23 billion 200 million yuan, that is to say, the amount of the whole panel factory losses into 8 or more from the second panel factory.

The second panel plant huge losses, caused the stock hit a recent low, depressed stock price disadvantage in the capital market financing firms, but also improve the net debt ratio of firms, the same adverse effects of borrowing from financial institutions, financing ability, especially in the present stage, a second panel factory in physique exists more and more the gap between the two manufacturers, the situation will be more fear of hardship.

The fierce competition large size panel products, and even extended to small and medium size panels on the market, including CPT, HannStar Guihui, CMO panel factory, will have in large size panel production is not competitive in the 3.5 generation plant, small and medium size panel market to produce high margin, cause small and medium size panel prices fell, this situation also affected the passive matrix driving the STN-LCD market, TFT and STN product prices caused by the simultaneous decline.

Chairman Li Kunyao AUO panel manufacturers for the merger, he pointed out that the second tier manufacturers in the face of working under pressure, often take a more aggressive pricing strategy, the panel price is not reasonable appear on the market, leading to the panel price fluctuations too much, but the fact that the second panel factory this practice on their own bad; if the panel factory merger, can reduce the occurrence of unreasonable price.

In addition to the combined direction, to Chinese factory modules after the establishment, in order to reduce the cost, the other is the panel factory strategy; CMO has just announced that it will go to the mainland of Ningbo set up module factory, said it would actively westward to reduce cost target. CPT chairman Lin Zhenhong said, will take "landing kanghan" strategy, and the top 2 Korean panel factory Samsung, LG PHILPS competition.

It is worth noting that the panel production line developed to the sixth generation glass substrate 1500X1850mm (mm by mm) above, a huge amount of equipment and expensive upstream materials, makes the sixth generation panel production plant products (IT panel for liquid crystal display panel or laptop computer), not necessarily has the cost advantage, that is to say, from the past the 2 generation line developed to the 5 generation line with the "big is beautiful" rule, in the above six generation line does not necessarily apply to.

According to foreign institutions analysis pointed out that the fifth generation of glass per piece price of about 12 thousand yen, compared with the sixth generation of glass 45 thousand yen, or the 7.5 generation glass up to 80 thousand yen several times higher, at the same time to consider the factors of early panel plant process yield, has the advantage to large size substrate production of IT products is not more than the 5 generation plant. On the other hand, the 6 generation to the factory every piece of substrate can create $3600 turnover of 19 inch display panel, and each substrate can create $4600 turnover of 32 inch LCD TV panels, or even $4950 turnover of 37 Inch LCD TV panel show 6 generation plant niche mainly in the production of LCD TV panel.

The diversification of downstream terminal application products, production line with the help of different generations to find their own niche advantage, also let the panel factory has more flexible use in itself capacity, relative to the second panel factory has larger living space, get rid of excessive clinging to the competition capacity investment behavior.