LCD panel industry reverses Korean Hutch to borrow 3D overtaking

The global competition of LCD panels is changing.

On December 15, LGD, the world’s second largest LCD panel maker, summoned the top 6 Chinese flat-panel TV manufacturers such as Skyworth, TCL and Hisense, as well as foreign CEOs such as Toshiba and LG Electronics, to the Beijing Hotel in order to promote its just R&D. Successful "do not flash 3D hard screen." In fact, in early December, LGD has partnered with Guangzhou LGD8.5 to create a new 3D TV with new 3D panels.

While targeting the next generation of 3D technologies, LGD and Samsung Electronics have shipped OLEDs and Chi Mei of Taiwan in the back of LCD-backlit LCD panels. This has also led to the overall shipment of Korean LCD panels. The volume ratio increased to 52% in the third quarter of 2010, while Taiwan's panel makers dropped to 37%.

From CCFL backlight LCDs to LED backlight LCDs, from 2D to 3D, every technology upgrade in the panel industry is viewed by Samsung and LGD as an opportunity, while Taiwanese panel makers are relatively passive in this upgrade.

Missing LED Opportunities Chi Mei, AUO and other Taiwanese panel makers have been the largest suppliers of color TVs in the mainland.

According to the report from the survey agency Displaysearch, 33.1% of the panels purchased by China's six color TV manufacturers in 2009 were from Chi Mei, and Samsung Electronics was 21.6%, while AUO and LGD ranked three or four, occupying 18% and 16% respectively. .

However, this situation reversed in 2010.

According to the latest data obtained by our reporter, in the first three quarters of 2010, the largest panel dealer in the mainland color TV industry became LGD, which was 27%; followed by Samsung, 24%. After establishing a joint venture with Changhong, TCL, and Haier, the AUO’s market share increased to 21%. Chimei, which initially built a liquid crystal module plant in the South China Sea, fell sharply to 19.9%.

According to Bai Weimin, the Secretary-General of the China Electronics Video Industry Association, “Although the mainland manufacturers also collectively went to Taiwan to purchase panels this year, and the purchase amount has increased compared to 2009, Korean panel makers have grown faster because of their LED LCD panels. The advantages of the field are more obvious."

In October 2009, the Chinese LCD TV market began to rapidly upgrade from CCFL LCD TVs to LED LCD TVs. 90% of the LED backlight panels purchased by mainland TV manufacturers were from Samsung and LGD.

Although Chi Mei and AUO subsequently followed suit to adjust their product structure, AUO and TCL established a joint venture to produce LED liquid crystal modules in Huizhou, but they still lost to Samsung and LGD. In the first three quarters of 2010, LED panels purchased by mainland color TV manufacturers accounted for 35% of LGD, Samsung accounted for 31%, AUO only 17%, and Chimei only 9%.

“In the upgrade from CCFL backlighting to LED backlighting, Taiwan’s panel giants have indeed fallen behind, especially in the area of ​​large-size LCD TV panels.” Yang Dongwen, vice president of Skyworth Group, told reporters that at present Taiwan’s AUO, Chi Mei, and Han Yucai Crystal and other LED panels are still mainly concentrated in the field of netbooks, notebook computers and liquid crystal displays.

From a global perspective, in the upgrade of LED liquid crystal panels, the two giants of South Korea now also have the upper hand. In the third quarter of 2010, the market share of LGD and Samsung reached 25.9% and 26%, respectively, while Chimei and AUO had only 14% and 16.1%, respectively.

By the third quarter of 2010, the penetration rate of global LED panel has been raised to 44%, and the penetration rate of LED panel in Mainland China is 23%. Industry insiders believe that Taiwan’s panel giants still have opportunities, but the pace of transformation needs to be accelerated.

The Korean panel makers who have already benefited from LED 3D panel warfare, are currently starting to deploy in the field of 3D LCD panels. The most active of these is LGD.

On December 15, LGD Global CEO Quan Yingshou, Vice President Yang Dongwen of Skyworth Group, Yang Bin, the new general manager of TCL Multimedia China Business Center, Liu Hongxin, general manager of Hisense Electric, and Mu Gang, president of Konka Multimedia Marketing, jointly released a new generation of 3D LCD panels. According to reports, using this panel will be able to use lighter polarized glasses to replace the expensive SG active shutter 3D glasses with flash problems.

Yang Dongwen said that although the use of SG glasses 3D TV resolution is higher, but from the perspective of the use of the screen is not flicker is more important, so the domestic color TV manufacturers will be in 2011 in the 3D TV main polarizing 3D TV.

At present, the market penetration rate of China's 3D TVs is only 1.5%. According to the forecast of the relevant agencies, 3D TVs will repeat the trend of LED-backlit LCD TVs this year after a substantial price drop. The market size is expected to exceed 8 million units, and this is behind LGD. Lower-cost 3D LCD panels will play a key role.

Sources told reporters that the use of LGD's new generation of 3D LCD panels, the cost of the original 3D panel to 15% -20%, while the price of matching polarized 3D glasses is only 1/10 of the SG glasses.

Samsung Electronics is also developing its own new generation of 3D LCD panels, and Taiwan’s panel giant is still just starting.

Luo Qingqi, a senior director of Pare Consultancy, believes that the competitive landscape of Korean and Taiwanese panel makers is of great value to newly-entered Chinese panel makers. The 8.5-generation line of Huaxing Optoelectronics and BOE must use the latest from the very beginning. LED backlight, not flash 3D and other technologies.

Taiwanese panel makers currently face many challenges.

Although the price of LCD panels has dropped sharply, especially the price of LED panels has dropped by 44% within one year, resulting in Samsung's LCD panel business and LGD's third-quarter profit also decreased sharply year-on-year, but AUO's profit decreased by as much as 97% during the same period. Huaying and other panel makers began to suffer losses.

In addition, Samsung's 7.5-generation line in Suzhou and LGD's 8.5-generation line in Guangzhou will start construction in early 2011 and mass production will be completed by the end of 2012. Relevant departments in the Taiwan region still did not fully release the high-generation line landing, resulting in the suspension of AUO's Longfei Optoelectronics in Kunshan, and Foxconn's 8.5-generation line in Chengdu could not be approved. This caused the Korean panel giant to compete in the mainland panel market. Passively changed to active, it is clear that the situation facing Taiwanese companies is even more severe.

“Even if the house leaks, it is always raining overnight.” As Samsung Electronics came forward to do tainted witnesses, the European Union issued a 6.5 billion euros fine on five major panel giants including Chi Mei, LGD, AUO, and Huaying on December 9. Chimei was fined. 300 million euros, although Foxconn chairman Terry Gou complained everywhere but it was difficult to change the fate of being punished.

In the arena of the panel, the situation of Taiwanese panel makers has become increasingly passive.