In the past two years, it has undoubtedly been the hottest time for China's display panel investment. Under the concept of ubiquitous display in the Internet of Things era, the Chinese panel industry has opened up a huge space. China's display panel industry's investment growth rate is fast, on the one hand, due to the vastness of the Chinese market, investors are extremely optimistic about the panel industry. On the other hand, it comes from the strong support of local governments for the panel industry, and also gives a lot of preferential policies in land and taxation.
China's LCD panel overcapacity
In the next five years, the world is expected to add 18 panel production lines, and mainland China will occupy 14. Driven by market and policy factors, foreign panel makers will actively come to China to build factories, which will further accelerate the global panel production capacity to the Chinese mainland. China is expected to surpass Korea in 2019 and become the number one producer of LCD panels.
Korean companies focus on OLED technology
However, with the investment in the panel industry, the signs of disorderly investment have also been revealed. In some places, blind construction of the line, the influx of non-leading enterprises, the blossoming of the industrial layout is not conducive to the healthy development of the industry. At present, there is already a situation of overcapacity in the LCD panel market in China. At the same time, the development speed of the display technology is so fast, and the rapid iteration brings new variables to the development direction of the industry.
Disorderly investment panel factory may lead to structural excess in the industry
As early as a few years ago, Samsung, the world's largest panel manufacturer, began to realize that China's panel companies may be involved in LCD panel production, which may lead to overcapacity. Therefore, it began to sell LCD panel production lines or switch to more advanced OLED panels. LG Display, another large panel company in South Korea, has closed many LCD production lines to produce large-size OLED panels. However, if Chinese panel companies continue to blindly invest in LCD panels in the context of display technology upgrades, they will once again lag behind Japanese and Korean companies.
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