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Chinese companies occupy more than half of the global TV panel market
According to TrendForce, Chinese suppliers have the top three largest TV panel shipments with a combined share of over 50% worldwide. They take positions in the market from both Korean manufacturers and Taiwanese. Not much time will pass, and all mass TV panels will be produced in China.
Image source: Samsung
Before the coronavirus pandemic, Samsung and LG planned to quickly exit LCD panel production. Quarantine and telecommuting forced both to postpone these plans. As a result, the production of TV panels in 2021 will be approximately at the same level as in 2021 or 269 million pieces per year.
Interestingly, despite the high demand for these products (in developed countries, quarantine measures are almost not weakening), more panels did not come out. First, monitor manufacturers are in no rush to increase production. Secondly, at two factories in Japan for the production of high-tech glass, there were accidents with damage to equipment. Thus, there was a deficit and an increase in prices when concluding supply contracts.
The lack of production capacity is pushing panel manufacturers to focus on the most profitable product — the largest panel diagonal possible. Therefore, in particular, TrendForce expects the average size of TV panels this year to increase by 1.6 inches and approach 50 inches. This also means that the average price of panels and TVs will continue to rise and the boundaries of this growth are difficult to predict, because the COVID-19 pandemic, the situation with which remains uncertain, is still far from being curbed.
According to TrendForce, two Chinese companies — BOE and CSOT (China Star Optoelectronics Technology) — through capacity expansion and other actions will collectively capture about 40% of the TV panel market this year. At the same time, BOE and CSOT are actively improving their technologies and promoting high-end products such as 8K and Mini LED, and will likely expand their offerings.
China’s third TV panel manufacturer, HKC, is rapidly expanding production. And this is happening at such a rapid pace that this year it will take the third place in the world in terms of supply. Along with its H5 factory in Changsha, which is due to start mass production soon, HKC has a total of four Gen 8 factories.6. It will enter the top three TV panel manufacturers for the first time, providing 33.7% annual growth. Together with BOE and CSOT, HKC will supply over 50% of TV panels this year, cementing China’s dominance in this area.
Data on the supply of TV panels in 2021 and forecast for 2021. Image source: TrendForce
Innolux to fail the most among two Taiwanese TV panel makers. She will slide from second to fourth. AUO will go down from sixth to seventh place. Both of them plan to lead in the supply of panels on the latest technology — Micro LED and support for 8K resolution. By the way, the proximity to Taiwanese chip manufacturers and old ties will help them suffer less from the semiconductor shortage that has covered the modern world.
As for LG Display and Samsung (SDC), they also plan to expand the production of innovative panels, but they are in no hurry to abandon production using outdated LCD technologies, since the demand for them turned out to be very, very large.