The liquid crystal panel profits accelerated shrinking eight generation uncertainty difficult to mass production

When mainland China LCD manufacturers are still ready to launch the fifth generation, sixth generation LCD production line, foreign Samsung - SONY, PHILPS and LG- in China, Taiwan's Chi Mei had claimed in 2007 or 2008 eighth generation LCD production enterprises, considering the input and output balance. At present the plan propaganda in silence. However, SHARP said its eighth generation LCD screen will be completed and put into operation in September and October of this year, the supply to the Chinese market to early in early 2007. Insiders at this time to invest in the feasibility of the eighth generation production line showed a greater difference. Because the LCD production line, if we cannot guarantee that the gross margin will in about 25% losses, and seventh generation line capacity of constant volume growth and demand growth of large size asymmetry, make plans to put into operation in the eighth generation line manufacturers worried.

Seven generation line weight increase eight generation line concerns

When Samsung, PHILPS, SHARP, SONY, LG-, AUO, CMO five announced in 2007 or 2008 eighth generation LCD production, the industry of the eighth generation production line investment feasibility showed large differences, which measure the input and output are considered manufacturers is the key to start the eighth generation line.

The establishment of the eighth generation line requires huge investment. SHARP is the world's first announced plans to build a eighth generation LCD production line manufacturers. In July last year, they had revealed that it would invest $4 billion 600 million to build a plant of the eighth generation. In addition, in expanding the size of the panel at the same time, we must ensure that the finished product rate.

According to expert opinion, for more than 50 inches LCD TV, the seventh generation line can also be cut, the difference is that the eighth generation line can be cut by the 6, the seventh generation line cut only 3. In the current seventh generation line has matured, it can fully meet the current market demand for a small amount of more than 47 inches LCD tv. Only the Chinese market, for example, Naka Yiyasu 1 to May this year, statistics show that more than 47 inches LCD TV retail sales accounted for only about 0.0025%.

According to the market research company is expected to 2008, the world's seventh generation LCD panel production line and above at least 8, according to the conservative calculation of each monthly production capacity of 60 thousand, a year there will be nearly 6 million capacity.

LG- PHILPS recently said that due to inventory considerations, they are cutting production, hoping to balance supply and demand in the short term". The company's overall production capacity this year and the future is currently being re evaluated.

LG- PHILPS said that by the end of the second quarter, LCD TV shipments are expected to grow by about 25% over the previous quarter, but the number is expected to be reduced by more than 50%. The LCD TV shipments in the region and compared to the previous quarter may be only 10 percent increase, and before they are expected to increase by more than 25%. LG- PHILPS also said it expects the end of the second quarter, the average price per square meter of glass substrate will decline by 15% over the previous quarter, higher than the original expected level of about 6%-9%.

The rapid expansion of production capacity will undoubtedly accelerate the price of LCD TVs to speed up. Because the first half of 2006 42 inch panel prices fell by 20%, while the LCD TV in the fall of 42 inches, the price of 40 inches panel fell by 15%, the same period of 40 inch LCD TV also fell by 15%.

Behind the decline in prices is to accelerate the shrinking profits, but for the LCD screen production line, if you can not guarantee the gross margin of about 25% will be a loss. Seventh generation line capacity growth and asymmetric growth in demand for large size, but also to plan to put into operation the eighth generation line manufacturers worry.

Eight generation line in the big screen market is unknown

Although a lot of people on the recent establishment of the eighth generation LCD screen production line of doubt, but another kind of sound is to support the horse immediately, because the current market demand for more than 46 inches large size TV growth. Naka Yiyasu 1 to May this year, statistics show that, although more than 46 inches LCD TV retail volume share of only 2.62%, but compared with the same period last year, the growth rate is very obvious 0.01%. China liquid crystal optical optoelectronic industry associations professional branch honorary director of high hung Kam said, for flat-panel TV, large size is definitely a trend, now the seventh generation line from both specifications and related products, the rate of finished products are relatively mature, into the eighth generation line occupied larger areas is inevitable.

We have been said to dominate the plasma TV in the field of large size, in fact, the size of the concept of plasma has been hovering around 42 inches. According to statistics, 42 inch plasma TV accounted for about 90% of all plasma TVs, although plasma manufacturers are moving toward a larger size of 50 inches, but the action is more conservative.

Although sainuo optimistically predicted that in 2008 global LCD TV market 40 inches and above specifications proportion by 7% now will rise to more than 15%, but in 40 inches and above the concept, 52 inches can occupy much of the seats is not yet known.

Therefore, for the production of more economically to provide 52 Inch LCD screen for the eighth generation line, is the opportunity or trap are still unknown. In fact, according to the size of the TV to consumers to calculate, in the development of the LCD panel to a certain extent after the increase in the size of the panel is not more reasonable?

Manufacturers in the big screen market differences

Although the eighth generation LCD production line is not a word, but did not prevent domestic machine manufacturers to enter the large size LCD TV pace, and in 2008 the global 40 inch LCD TV market and the proportion of the above specifications