Japan-Korea panel giant turn OLED Huaxing BOE or follow-up

Samsung and LG, global leader in the panel industry, suddenly replaced the runway and accelerated the transition to OLED. Is China's panel industry sticking to or following up?

Li Dongsheng, Chairman and CEO of TCL Group, apparently had full confidence in the former. He said that LCD still has a 10-year industrial cycle, and it is difficult for OLED to replace its position within 5 to 8 years. Of course, TCL Holdings's China Star Optoelectronics is also following up on OLEDs.

Turning giants

On February 20, Samsung Electronics announced that it will spin off its loss-making LCD business, establish an independent subsidiary “Samsung Monitor” (tentative name), and integrate it with OLED business. The new company will begin operations on April 1. .

Another Korean panel giant LG Display (LGD) also announced in February that it will invest in the 8th-generation OLED production line in the first half of 2012 for mass production of 55-inch OLED TV panels.

The unresolved LGD Guangzhou 8.5 generation LCD panel project has also been in a dilemma. On February 20th, the president of LGD visited senior officials of the Guangdong provincial government and the two sides exchanged views on the LGD Guangzhou 8.5-generation line project. It is understood that the result is "not optimistic," because the loss of liquidity in the LCD business has strained funding, and LGD wants to focus more resources on OLEDs.

Both Samsung and LG will launch 55-inch OLED TVs this year, and 2012 will be the "test year for OLED TVs."

The industry believes that in the past 5 to 10 years, OLED has been eagerly concerned about, this year is the most important time point of vector production from the laboratory, has already entered the conditions for large-size flat-panel televisions from smart phones.

Japanese companies that once gave up OLED have reentered the arena. Leaded by the Japanese government, Sony, Toshiba and Hitachi have established joint ventures to try to snatch 21% of the global market for small and medium size LCD panels.

Philips also plans to exhibit OLED TVs at the Berlin Consumer Electronics Show in September this year.

The research organization predicts that the global shipment of OLED TV panels in 2012 will be approximately 113,000 units, which is minimal compared with the sales volume of more than 200 million flat-panel TVs worldwide. However, it will gradually increase in the next six years. It is estimated that global shipments of OLED TV panels will be 567,000 in 2013, 1.656 million in 2014, 3.677 million in 2015, 6.952 million in 2016, 11.93 million in 2017, and 18.1 million in 2018. sheet.

The output value of OLED panels in 2011 is expected to reach 4 billion US dollars, which is about 4% of the output value of all flat panel displays; in 2018, it will create output value of more than 20 billion US dollars, reaching 16% of the output value of all flat panel displays.

More researchers said that the time left for Chinese LCD panel companies is only 3 to 5 years. Once OLED matures and the price drops, it will reach the level of LCD 1.5 times, the market will change, and China will step up its layout.

China panel: stick to or follow up?

Li Dongsheng believes that OLEDs are most likely to replace LCDs in small and medium-sized displays. However, subject to the production process and cost factors, it is currently impossible to use them on TVs. There should be replacements after 5 to 8 years, but they will also start from the high-end market. Therefore, TFT-LCD has a 10-year industrial cycle.

However, TCL dared not give up. Li Dongsheng disclosed that Huaxing will also invest in a 4.5-generation OLED test line this year, which is expected to be completed by the end of the year. At present, China Star now has 220 technical team, the future will be expanded to 250 to 270 people, the new staff to do the next generation of display technology development.

In fact, BOE is planning similar projects in Erdos, Tianma in Shanghai and Xiamen, and Rainbow in Shunde.

Professor Gu Zhihua, director of the Flat Panel Display Engineering Research Center at Fudan University, said that large-size OLED panels still have problems such as low yield, high cost, and short life span. China still needs to focus on TFT technology and vigorously push forward the construction of oxide TFTs. As long as there is a breakthrough in technology, "it is relatively simple to follow OLED."

Industry believes that this year's OLED TV "test water" will only affect the global flat-panel TV market "tap", "Tower" and "Taki" is still a LCD TV. As high-end TFT technology is still the foundation of OLED, Chinese companies should solidly make the LCD industry.

In fact, Samsung did not give up LCD. At the beginning of the year, Zhang Yuanji, former president of Samsung's LCD panel division, was transferred to the president of Samsung Greater China. This means that Samsung will continue to promote the Suzhou 7.5-generation line project.

However, the short-term panel industry is not optimistic. Li Dongsheng believes that the current industry is "already in the end." Since the second half of this year or next year, supply and demand will tend to balance. After Huaxing has heavy volume in the next year, once the market turns better, it will also be profitable. He stressed that this year's Huaxing production capacity will reach 100,000 tablets/month, and the yield rate will reach 92%.

“China Star will do according to the industry rules of the panel industry.” Li Dongsheng said that Samsung and LG both split the LCD panel business into independent businesses, and Huaxing will also take this route. In the future, panels will be supplied to other color power plants.

Industry rumors that China's panel import tariffs will be adjusted from 3% to 5% this year, which is ChinaStar, BOE or opportunities. Li Dongsheng, president of the China Video Industry Association, said that China's panel import tariffs are lower than India, Brazil, Russia and other countries. The appropriate increase of tariffs by the Chinese authorities will be beneficial to the development of the domestic panel industry.


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