The Booming Panel Market: Boom And Boom, Camp Shuffling Continues

Entering the second half of 2020, the market of panels finally began to reverse.

Sigmaintell data show that the price of mainstream LCD TV panels will rebound in June, and the supply and demand in the three quarter will be tightened. It is expected that the price of panel will maintain a rising trend in July.

According to data collected by WitsView, the average price of the 32 inch and 55 inch TV screens in the late June 2020 were 33 US dollars and 105 US dollars respectively, which rose by 1 US dollars and 2 US dollars respectively in the first half of June.

Many panel analysts told the twenty-first Century economic news reporter that the boom of the panel began to rebound in the three quarter of this year, but there are still many variables going on.

Although the panel factory has been having a hard time in recent two years, the demand for global screen is growing from the overall trend, from mobile phones, tablets, computers and televisions to wearable, Che Zaiping and commercial screens. Although the panel has periodicity, it is the trend of upward spiral vibration from the curve.

At the same time, the panel Market in 2020 was surging, and the various camps were constantly shuffling and changing. From LCD to OLED, a new round of competition is underway.

The inflection point is already present.

Many research institutions have said that the three quarter panel prices are expected to rise, the upward trend of the industry has emerged.

The TV side is most obvious. QQ consulting said that with the strong demand for overseas TV demand represented by the European and American regions, and the main brands in order to achieve annual sales targets, the stocking plan for the peak season was positive, and the demand for panel production increased significantly in June. Panel supply, the main panel manufacturers continue to control the size of the supply of television panels, inventory effective at the end of May.

For example, the 55 inch product is affected by the withdrawal of Korean factories and the strong demand for stocking. It is expected that the price will rise by US $3 in June and maintain the increase in July. The 32 inch products, strong demand for overseas stockings and tight storage will bring tight supply. In June, the price will rise by US $1, and the expected increase in July will be expanded to US $2.

QQ consulting also predicted that Notebook panel prices will continue to rise steadily, and the expected growth rate will expand in the three quarter. Among them, low end TN products are in short supply under the demand of Chromebook. The average price in June is expected to rise by about US $0.1, and the average price in July will rise by US $0.2. The price of mainstream IPS products will remain unchanged in June, and July will usher in a slight rise of about 0.1 US dollars.

Industry analysts said that in the first half of the year, the supply of pen and electric panels was not slow in the first half of the year, thanks to the demand for pen and electricity at home and distance education. And now the panel factory is also optimistic that the demand is expected to extend to the third quarter. In addition, the stock of brand manufacturers and Samsung and LG accelerate the withdrawal from the LCD field, resulting in supply contraction. The new production line will be limited next year, and the supply and demand situation is expected to continue to improve.

In the past year, the panel has been in the doldrums. At the beginning of this year, there was an epidemic attack, and the panel had dropped to the bottom. Recently, Li Dongsheng, founder and chairman of TCL, said in an interview that the decline in demand caused by the epidemic changed the trend of the price of the panel. However, from the perspective of the whole industrial structure, as the Han factory capacity was withdrawn, the situation in the three quarter will be improved compared with the two quarter as the epidemic situation eased and the market demand gradually recovered. "Personally, I think the two quarter should be the bottom of the price." Li Dongsheng said.

The same judgement was also made by BOE. In the recent investor exchange activities, BOE said that the price of the panel rebounded in the first quarter of 2020, but as the epidemic spread around the world, the price of the panel began to decline again in April, and the price of the panel is now near the lowest level at the end of 2019. Looking forward to the three quarter, demand is gradually recovering, and the effect of overseas capacity withdrawal will begin to appear in the three quarter. With the improvement of supply and demand, most of the panel prices in June have already stopped, and some of them have even risen slightly.

Continuous shuffle reform

While the boom has been rising, the panel industry has seen major events.

On the one hand, with the withdrawal of Korean manufacturers and Japanese manufacturers, the LCD panel is facing a shuffle, and domestic manufacturers will occupy the theme. According to QQ statistics, in the first quarter of 2020, mainland China's LCD panels accounted for 55% of the world's total shipments, compared with 46% in 2019.

For example, JDI announced in June 30th that it would get rid of its original revenue structure with LCD panels as its main business, and use touch screen sensor technology to enter the medical display industry. Samsung and LG, who are ready to throw off the LCD production line, are not yet known who will eventually spend their lives in Suzhou and Guangzhou. Another variable is China Electric panda. The potential buyers of its production line include TCL technology, BOE and so on. Many people in the industry believe that TCL technology is more likely.

On the other hand, the panel companies are making efforts to develop new display technologies, such as OLED, quantum dots, MiniLED, MicroLED and so on.

An important data is that according to Omdia statistics, as of February 2020, the total volume of OLED TV delivery reached 10 million 50 thousand, exceeding 10 million units for the first time. This means that OLED is gradually being popularized, and the use of tens of millions of products is an important symbol of product scale. At present, only LG has the capacity to mass production in the field of large-size OLED, but the new competition has begun. Previously, JDI said it would use printing technology to produce large size OLED in 2020.

In addition, BOE, Huaxing photoelectric, visa and Hui Ke continue to invest in OLED, including small and medium size and large size. TCL technology intends to invest 2 billion yuan in Japan's panel plant JOLED, and continue to invest in inkjet printing OLED technology to reduce the cost of mass production of large-size OLED panels. Many industry insiders told the twenty-first Century business news reporter that last year TCL technology was already exploring the OLED production line using printing technology.

Chen Jun, deputy general manager and chief analyst of QQ consulting, told the twenty-first Century economic report: "at present, the OLED investment in the global large-size field is still dominated by Han factory, and the OLED technology investment around the large-size products will continue in the next few years. In the field of small and medium size, according to Sigmaintell data, the global OLED panel demand in 2020 was about 520 million, an increase of about 16% over the same period, of which mainland shipments are estimated to be about 83 million shipments, representing an increase of about 91% over the same period last year.

In addition to OLED, MiniLED is also in the battle. According to the survey of the LED Research Center (LEDinside), apple expects to launch a 12.9 inch MiniLED backlight iPad Pro in the first quarter of 2021, which will lead to a boom in LED supply chain. Among them, the matching of backlight module factory and panel factory is currently dominated by HEESUNG Electronics and LG Display in Korea. With the advent of new models in the future, more suppliers, such as GIS, Roy, SHARP and BOE, are expected to join.

Next, the change of card position and pattern will continue.

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