Japan and South Korea panel giants turn OLED Huaxing BOE adhere to or follow up

Samsung and LG, the global leader in the panel industry, suddenly changed their runways and accelerated the transition to OLED. Does the Chinese panel industry stick to it or follow up?

Li Dongsheng, chairman and CEO of TCL (microblogging) Group, is clearly confident of the former. He said that LCD has a 10-year industrial cycle, and it is difficult for OLED to replace its position within five to eight years. Of course, TCL Holdings' Huaxing Optoelectronics is also following up on OLEDs.

Giant who is turning around
On February 20th, Samsung Electronics announced that it will split the loss-making LCD business, establish an independent subsidiary "Samsung Display" (tentative name), and integrate it with the OLED business. The new company will start operation on April 1. .

South Korea's other 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 to mass produce 55-inch OLED TV panels.

The LGD Guangzhou 8.5-generation LCD panel project, which has been pending, has also entered the valley. On February 20th, the president of LGD visited the top 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 LCD business is losing money and LGD wants to focus more resources on OLED.

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

The industry believes that in the past 5 to 10 years, OLED has been eagerly watched. This year is the most important point in time for the vector production from the laboratory. It has the conditions to enter the large-size flat-panel TV from the smartphone.

Japanese companies that once gave up OLEDs have re-entered the game. Led by the Japanese government, Sony, Toshiba and Hitachi have set up joint ventures to try to grab 21% of the global small and medium-sized LCD panel market.

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

Research institutes predict that global shipments of OLED TV panels will be approximately 113,000 units in 2012, which is insignificant compared to sales of more than 200 million flat-panel TVs worldwide. But in the next six years, it will gradually climb. The global shipment of OLED TV panels is expected to be 567,000 in 2013, 1.566 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.

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

More researchers said that the time left for Chinese LCD panel companies is only three to five years. Once the OLED is mature and the price drops to 1.5 times the LCD level, the market will be replaced. China must pay close attention to the layout.

China panel: stick to it or follow up?

Li Dongsheng believes that OLED is most likely to replace LCD in the small and medium display field. However, due to the production process and cost factors, it is still impossible to apply it on TV. It should be replaced after 5 to 8 years, but it will start from the high-end market. Therefore, TFT-LCD has a 10-year industrial cycle.

But TCL did not dare to give up. Li Dongsheng revealed 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, Huaxing has 220 technical teams, and will expand to 250~270 people in the future. The new personnel will be the next generation display technology development.

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

Professor Gu Zhihua, director of the Flat Panel Display Engineering Research Center of Fudan University, said that large-size OLED panels still have problems such as low yield, high cost and short life. China should still focus on TFT technology and vigorously promote the construction of oxide TFTs. As long as the technology has a breakthrough, "following the OLED is relatively simple."

The industry believes that this year's OLED TV "testing water" will only affect the "tower" of the global flat-panel TV market. "Tower" and "Taki" are still LCD TVs. Since high-end TFT technology is still the foundation of OLED, Chinese companies should do a solid job in the LCD industry.

In fact, Samsung did not give up the LCD. At the beginning of the year, Zhang Yuanji, the former president of Samsung 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 situation is not optimistic. Li Dongsheng believes that the current industry is "in the end", and supply and demand will tend to balance in the second half of this year or next year. After Huaxing’s heavy volume next year, once the market turns better, it can be profitable. He stressed that this year Huaxing's production capacity will reach 100,000 pieces/month, and the yield rate will reach 92%.

"Hua Xing will do according to the industry rules of the panel industry." Li Dongsheng said that both Samsung and LG have split the LCD panel business into independent operations, and Huaxing will follow this path, and will supply panels to other color power plants in the future.

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

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