From the panel "five tigers" to "double tigers", the integration of the LCD panel industry in Taiwan is still on the road.
“I saw that the profitability of the panel industry in the past few years has gone wrong, and there is almost no new capacity. Some investors and financial institutions have expectations for the merger.†On April 11, Peng Shuanglang, General Manager of AU Optronics, accepted 21 In an exclusive interview with the reporter of Century Economic Report, the news about the merger of AU Optronics and Foxconn's Quncheng was occasionally mentioned by the outside world, but the scale of production capacity is only one of the many competitiveness of LCD panel companies. "The merger is not necessarily a good thing."
"Double Tiger" merger may not be a good thing
In 2002, the Taiwan region proposed the “Two Mega Double Star†program, which provided strong policy support for the development of the local panel industry. The LCD panel industry developed rapidly and its market share once surpassed that of South Korea, ranking first in the world. The peak of the panel industry in Taiwan has formed the so-called "panel five tigers" pattern consisting of AU Optronics, Chunghwa Picture Tubes, Guanghui Electronics, Chi Mei Optoelectronics, and Hanyu Caijing.
Due to the overall huge losses in the previous round of LCD panel industry and the global financial crisis, LCD panel companies in Taiwan have undergone several rounds of reshuffle. Among them, Guanghui Electronics has been integrated into AU Optronics, and Chi Mei Electronics has been integrated into the Hon Hai Group. Innolux, the “Five Tigers†pattern was replaced by the “panel double tiger†pattern consisting of Innolux and AU Optronics.
At present, from the perspective of global LCD layout, South Korea's LGD and Samsung market share ranks first and second; China's new capacity represented by BOE and Huaxing Optoelectronics is not broken; Taiwan's LCD panel industry encounters capacity Clipping.
It is understood that about 70% of the global LCD panel production capacity will come from mainland China in the next two years. Peng Shuanglang also told reporters that in the past three years, there has been almost no new capacity in the LCD panel industry in Taiwan.
Peng Shuanglang said, "Some people hope to return to the world's number one capacity by merger."
In February this year, according to Taiwan media reports, Taiwan’s “Economic Minister†Zhang Jiazhu confirmed that Hon Hai’s chairman, Guo Taiming, had asked him to discuss the merger of the two tigers and said that the “Ministry of Economic Affairs†was optimistic, but respected the wishes of both parties. Forced to intervene. At the time, AUO’s external calibre was: Openness to industrial integration, but there is no specific plan at present.
"There is no development at present (consolidation)." Peng Shuanglang told reporters that to merge, AU Optronics can be said to have the most say, and has experienced two successful mergers in history.
The predecessor of AU Optronics was Daxie Technology. In September 2001, it merged with Lianyou Optoelectronics and changed its name to AU Optronics. In 2006, AU Optronics re-acquired Guanghui Electronics.
“These two mergers are successful mergers.†Peng Shuanglang said that the measure of success is whether it can bring new value and create complementary effects. “After two mergers, AUO has the ability to manufacture complete large, medium and small panels. Production lines of all generations."
However, he stressed that the scale of the global LCD panel industry is already very large. Only AUO's production capacity accounts for 15% of the global scale. This industry is no longer the stage of alternative growth in the past. "The development model of the panel industry now. Already transferred, the past economies of scale may not work."
Continental panel size concerns
Peng Shuanglang believes that when the color TV industry transitions from CRT to flat panel, the LCD panel industry can enjoy the dividend brought by alternative growth. At that time, this industry was a typical capital and technology-intensive industry, but now with the expansion of global production capacity, Enter the era of cost competition.
“Yuanda’s production capacity has not expanded last year, but revenue has increased by 10%.†Peng Shuanglang said that the LCD panel industry will then transition from alternative innovation to application innovation. Simply increasing the scale cannot improve competitiveness, but increase Technology investment should shift from quantitative expansion to qualitative development.
Peng Shuanglang believes that this change in development model is also a hint for the LCD panel industry in mainland China.
Thanks to the support of government policies and the trend of global industrial transfer in recent years, China's LCD panel production capacity has expanded rapidly. Up to now, the BOE panel production line (including construction) has reached 7; TCL Group's Huaxing Optoelectronics has also planned to build a third panel production line.
For the expansion of the capacity of China's LCD panel factory, Peng Shuanglang said that, first of all, the mainland panel production line is mainly concentrated in the 8.5 generation line, and from the perspective of economic cutting, the size of the cutting can be limited, mainly 52, 48, 55, etc. Size products, and the demand for products on the market is more diverse, such as 50-inch, 65-inch, only 6-generation line or 7.5-generation line can be cut.
Secondly, most of the mainland production lines are newly built, and AUO's panel production line will be depreciated next year, which is relatively more competitive in terms of cost.
Third, the current competitive advantage of the LCD panel industry is not brought about by capacity expansion, such as 4K, curved surface, high color gamut, etc., and the requirements for technology and R&D are very high. AUO demonstrated the first 42-inch to 65-inch UHD 4K wide color gamut curved LCD TV screen at the China Electronic Information Expo (CITE 2014) held in Shenzhen on April 10-12. Peng Shuanglang told reporters 4K, curved surface, high color gamut and so on are the characteristics of OLED products, but now AUO is the first to mass-produce these technologies. It can be said that the trend of OLED in the large-size TV panel market has been delayed for at least several years, "or It is said that costly OLEDs may not have a market in this field."
"Other manufacturers can follow up in these areas, but at least half a year or a few years later." Peng Shuanglang believes that the trend of consumer electronics is changing rapidly. The life cycle of a product may be half a year. ".
Finally, Peng Shuanglang believes that due to local government investment factors, the layout of LCD panels in mainland China is more dispersed, which is not conducive to improving overall efficiency.
Tariff is a double-edged sword
With the increase in the production capacity of LCD panels in mainland China, LCD panel manufacturers and industry experts have proposed to increase the import tariffs on LCD panels on different occasions, winning development time for domestic panel makers.
At this year's National Conference, member of the National Committee of the Chinese People's Political Consultative Conference and Academician of the Chinese Academy of Sciences, Ouyang Zhongcan believes that China's flat-panel industry will remain in a tough period in the next five years, requiring more policy support from the state, and suggesting that the country will increase the tariff rate of liquid crystal display panels from 5%. Up to 10%. Li Dongsheng, deputy to the National People's Congress and chairman of TCL Group (000100.SZ), also believes that it is of great significance to increase the protection of domestic flat panel display companies in terms of tariff policy, including: material exemption, VAT refund, and import tariffs on LCD panels. Increased from the current 5% to 8%-10%.
In this regard, Peng Shuanglang said that raising import tariffs has an early protection effect on the panel of mainland China, but in the long run, it is not necessarily a good thing to increase competitiveness. "Protection may bring backwardness. There are many examples in this regard in history. On the contrary, only competition can prompt everyone to find a way to survive."
More importantly, Peng Shuanglang believes that raising import tariffs is a double-edged sword. It is beneficial from the perspective of protecting LCD panel manufacturers, but from the perspective of terminal manufacturers and consumers, it increases costs.
According to Peng Shuanglang, the panel industry in Taiwan is also communicating with relevant mainland institutions through the “Cross-Strait Flat Panel Display Associationâ€. At the same time, mainland color TV brand manufacturers are also important information transmission channels.
Peng Shuanglang believes that, to take a step back, even if the tariff is increased by 5 percentage points, considering the panel imported by the mainland terminal enterprises, it will still be exported after being assembled into a TV. This part will not be affected by the increase in tariffs. TV assembly capacity, of which 45 million units are sold domestically, and 90 million foreign products have nothing to do with raising tariffs."
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
“I saw that the profitability of the panel industry in the past few years has gone wrong, and there is almost no new capacity. Some investors and financial institutions have expectations for the merger.†On April 11, Peng Shuanglang, General Manager of AU Optronics, accepted 21 In an exclusive interview with the reporter of Century Economic Report, the news about the merger of AU Optronics and Foxconn's Quncheng was occasionally mentioned by the outside world, but the scale of production capacity is only one of the many competitiveness of LCD panel companies. "The merger is not necessarily a good thing."
"Double Tiger" merger may not be a good thing
In 2002, the Taiwan region proposed the “Two Mega Double Star†program, which provided strong policy support for the development of the local panel industry. The LCD panel industry developed rapidly and its market share once surpassed that of South Korea, ranking first in the world. The peak of the panel industry in Taiwan has formed the so-called "panel five tigers" pattern consisting of AU Optronics, Chunghwa Picture Tubes, Guanghui Electronics, Chi Mei Optoelectronics, and Hanyu Caijing.
Due to the overall huge losses in the previous round of LCD panel industry and the global financial crisis, LCD panel companies in Taiwan have undergone several rounds of reshuffle. Among them, Guanghui Electronics has been integrated into AU Optronics, and Chi Mei Electronics has been integrated into the Hon Hai Group. Innolux, the “Five Tigers†pattern was replaced by the “panel double tiger†pattern consisting of Innolux and AU Optronics.
At present, from the perspective of global LCD layout, South Korea's LGD and Samsung market share ranks first and second; China's new capacity represented by BOE and Huaxing Optoelectronics is not broken; Taiwan's LCD panel industry encounters capacity Clipping.
It is understood that about 70% of the global LCD panel production capacity will come from mainland China in the next two years. Peng Shuanglang also told reporters that in the past three years, there has been almost no new capacity in the LCD panel industry in Taiwan.
Peng Shuanglang said, "Some people hope to return to the world's number one capacity by merger."
In February this year, according to Taiwan media reports, Taiwan’s “Economic Minister†Zhang Jiazhu confirmed that Hon Hai’s chairman, Guo Taiming, had asked him to discuss the merger of the two tigers and said that the “Ministry of Economic Affairs†was optimistic, but respected the wishes of both parties. Forced to intervene. At the time, AUO’s external calibre was: Openness to industrial integration, but there is no specific plan at present.
"There is no development at present (consolidation)." Peng Shuanglang told reporters that to merge, AU Optronics can be said to have the most say, and has experienced two successful mergers in history.
The predecessor of AU Optronics was Daxie Technology. In September 2001, it merged with Lianyou Optoelectronics and changed its name to AU Optronics. In 2006, AU Optronics re-acquired Guanghui Electronics.
“These two mergers are successful mergers.†Peng Shuanglang said that the measure of success is whether it can bring new value and create complementary effects. “After two mergers, AUO has the ability to manufacture complete large, medium and small panels. Production lines of all generations."
However, he stressed that the scale of the global LCD panel industry is already very large. Only AUO's production capacity accounts for 15% of the global scale. This industry is no longer the stage of alternative growth in the past. "The development model of the panel industry now. Already transferred, the past economies of scale may not work."
Continental panel size concerns
Peng Shuanglang believes that when the color TV industry transitions from CRT to flat panel, the LCD panel industry can enjoy the dividend brought by alternative growth. At that time, this industry was a typical capital and technology-intensive industry, but now with the expansion of global production capacity, Enter the era of cost competition.
“Yuanda’s production capacity has not expanded last year, but revenue has increased by 10%.†Peng Shuanglang said that the LCD panel industry will then transition from alternative innovation to application innovation. Simply increasing the scale cannot improve competitiveness, but increase Technology investment should shift from quantitative expansion to qualitative development.
Peng Shuanglang believes that this change in development model is also a hint for the LCD panel industry in mainland China.
Thanks to the support of government policies and the trend of global industrial transfer in recent years, China's LCD panel production capacity has expanded rapidly. Up to now, the BOE panel production line (including construction) has reached 7; TCL Group's Huaxing Optoelectronics has also planned to build a third panel production line.
For the expansion of the capacity of China's LCD panel factory, Peng Shuanglang said that, first of all, the mainland panel production line is mainly concentrated in the 8.5 generation line, and from the perspective of economic cutting, the size of the cutting can be limited, mainly 52, 48, 55, etc. Size products, and the demand for products on the market is more diverse, such as 50-inch, 65-inch, only 6-generation line or 7.5-generation line can be cut.
Secondly, most of the mainland production lines are newly built, and AUO's panel production line will be depreciated next year, which is relatively more competitive in terms of cost.
Third, the current competitive advantage of the LCD panel industry is not brought about by capacity expansion, such as 4K, curved surface, high color gamut, etc., and the requirements for technology and R&D are very high. AUO demonstrated the first 42-inch to 65-inch UHD 4K wide color gamut curved LCD TV screen at the China Electronic Information Expo (CITE 2014) held in Shenzhen on April 10-12. Peng Shuanglang told reporters 4K, curved surface, high color gamut and so on are the characteristics of OLED products, but now AUO is the first to mass-produce these technologies. It can be said that the trend of OLED in the large-size TV panel market has been delayed for at least several years, "or It is said that costly OLEDs may not have a market in this field."
"Other manufacturers can follow up in these areas, but at least half a year or a few years later." Peng Shuanglang believes that the trend of consumer electronics is changing rapidly. The life cycle of a product may be half a year. ".
Finally, Peng Shuanglang believes that due to local government investment factors, the layout of LCD panels in mainland China is more dispersed, which is not conducive to improving overall efficiency.
Tariff is a double-edged sword
With the increase in the production capacity of LCD panels in mainland China, LCD panel manufacturers and industry experts have proposed to increase the import tariffs on LCD panels on different occasions, winning development time for domestic panel makers.
At this year's National Conference, member of the National Committee of the Chinese People's Political Consultative Conference and Academician of the Chinese Academy of Sciences, Ouyang Zhongcan believes that China's flat-panel industry will remain in a tough period in the next five years, requiring more policy support from the state, and suggesting that the country will increase the tariff rate of liquid crystal display panels from 5%. Up to 10%. Li Dongsheng, deputy to the National People's Congress and chairman of TCL Group (000100.SZ), also believes that it is of great significance to increase the protection of domestic flat panel display companies in terms of tariff policy, including: material exemption, VAT refund, and import tariffs on LCD panels. Increased from the current 5% to 8%-10%.
In this regard, Peng Shuanglang said that raising import tariffs has an early protection effect on the panel of mainland China, but in the long run, it is not necessarily a good thing to increase competitiveness. "Protection may bring backwardness. There are many examples in this regard in history. On the contrary, only competition can prompt everyone to find a way to survive."
More importantly, Peng Shuanglang believes that raising import tariffs is a double-edged sword. It is beneficial from the perspective of protecting LCD panel manufacturers, but from the perspective of terminal manufacturers and consumers, it increases costs.
According to Peng Shuanglang, the panel industry in Taiwan is also communicating with relevant mainland institutions through the “Cross-Strait Flat Panel Display Associationâ€. At the same time, mainland color TV brand manufacturers are also important information transmission channels.
Peng Shuanglang believes that, to take a step back, even if the tariff is increased by 5 percentage points, considering the panel imported by the mainland terminal enterprises, it will still be exported after being assembled into a TV. This part will not be affected by the increase in tariffs. TV assembly capacity, of which 45 million units are sold domestically, and 90 million foreign products have nothing to do with raising tariffs."
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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