Lcd Panel: Japanese and Korean enterprises withdraw, domestic manufacturers take over After more than ten years of competition, the domestic enterprises rely on the establishment of large-scale production lines and price competition, gradually improve the industry voice. Especially after the Japanese and Korean enterprises represented by LG and Panasonic announced their withdrawal from the LCD panel market, the domestic manufacturers actively expanded their production to meet the market demand for LCD panels. According to relevant statistics, in 2021, BOE and TCL alone accounted for 40% of the global LCD production capacity. In response, foreign media said that LCD has entered the "Chinese era." Why do Japanese and Korean enterprises withdraw from LCD panel competition? This is closely related to the periodic fluctuation of the LCD panel market. From 2017 to 2020, when the market is declining and the profit space is being compressed, the panel manufacturers in the Chinese mainland will actively expand their production with the support of both policies and funds, which will further pressure the panel price. Samsung, LG, Panasonic and other Japanese and Korean manufacturers have decided to shift their focus to OLED panels, but even before the Japanese and Korean manufacturers quit, online education and home office have created huge demand for LCD panels. And the shortage of raw materials further increased panel prices. For a while, China's mainland panel manufacturers earn "pot full bowl."
Profit-increasing, income-generating, diversified business becomes the key to breaking the board In addition to expanding production, BOE also diversified its business. Boe has vigorously expanded its Internet of Things systems and professional services, and continuously improved its risk resistance and profitability. While fully developing the business office, education, hospital, energy, transportation and home, we will continue to deepen the retail and financial sectors. According to the financial report, in the first half of 2022, the revenue of BOE's display device business fell by 17.89% year on year. The revenue of IoT innovation business, sensors and solutions, MLED and smart healthcare business increased by 1.27%, 30.97%, 50.15% and 20.86% year on year respectively. This also highlights again in the panel cold winter, the business diversification to the panel manufacturer performance growth importance. However, it should be noted that in the first half of 2022, BOE's display device business accounted for 90.21% of its revenue, and its performance is still highly dependent on the panel business. In recent years, the intelligent level of the automobile has been continuously improved, and the vehicle-mounted display screen has gradually evolved to large-screen, high-definition, multi-screen, interactive and multi-form. The choice of materials for vehicle display has also become a problem for many manufacturers to consider. From the technical point of view, Micro LED display is technically difficult, OLED has not solved the problem of burn-in, and as an "upgraded version" of LCD, Mini LED has become the "new favorite" of vehicle-mounted display due to its long service life and non-burn-in. In the future, after Japanese and Korean manufacturers completely withdraw from the LCD panel business, the panel industry will continue to migrate to the Chinese mainland. although the overall domestic panel industry is improving and BOE and other companies occupy major markets in the world, in the long run, Diversified layout of OLED, QNED, Micro LED and other new technologies are still the key for domestic panels to compete in the future industry.
