Affected by the extended production schedule of Samsung display's 8.5-generation LCD factory in South Korea and the slow pace of the second-line panel factory to convert TVs into it products, it is estimated that the TV panel shipment in 2021 will return to the level similar to that in 2020, reaching 269 million pieces. China's panel factories are among the top three, accounting for more than 50% of the total market.

 

Along with the consolidation, capacity convergence and technology improvement among panel factories, as well as the rising demand and other factors, in 2021, in addition to implementing the production strategy of large-scale development, brand factories also began to actively adjust the product size configuration under the pressure of continuously rising panel prices and reducing profit performance. Therefore, it is expected that the average size of TV panels will have a chance to increase by 1.6 inches this year, 50 inches.

 

Chen qiaohui, an analyst at trendforce, further said that large-scale production is actually helpful for digesting production capacity. In the first half of 2021, limited production capacity not only led to a shortage of supply, but also supported the rising trend of TV panel prices; The second half of the TV panel demand is still hot, we must observe several key points: first, whether the terminal market price increase has an impact on gas buying; (2) whether the epidemic situation has been effectively controlled after vaccination for various countries; Third, whether the strength of global economic recovery is obvious; In the end, whether the customer is due to higher raw material prices, similar fire and other safety accidents caused by glass shortage, tight supply of IC and prolonged transportation time, there is a demand for excess demand.

 

BOE and Huaxing optoelectronics, the two giants of China's panel factories, will account for 40% of the total TV panel shipment volume due to the continuous increase of production capacity and the end of merger and acquisition. At the same time, BOE and csot are actively promoting their own technical capabilities and promoting the transformation of high-level products, such as 8K, ZBD, am miniled, etc. In the future, with the help of technology improvement and abundant funds, it is expected to continue to extend the enterprise territory to more upstream areas and realize more systematic vertical integration.

 

In addition, when supply exceeds demand, Huike, whose capacity continues to climb, naturally becomes the focus of the market. In addition to the H5 plant in Changsha, which is about to enter mass production, Huike already has four 8.6 generation production lines. This year, through capacity improvement and further cooperation strategy with first-line brands, it is expected that Huike will enter the top three in the TV panel shipping list for the first time, with a shipping volume of about 41.91 million pieces, The annual growth rate was 33.7%.

 

Taiwan's Youda and qunchuang's shipment volume has been slightly reduced due to limited capacity, but they are committed to product optimization and cross domain cooperation strategies, which bring them more advantages. Among them, Youda is not only the industry leader in the development technology of ultra-high-level products 8K + ZBD, but also the leader in the development of micro led in other panel factories. In addition to the diversity of its products, group innovation has its own ODM. It is worth mentioning that with the advantages of the group and the long-term cooperation with IC design manufacturers, the two Taiwan based panel manufacturers are more advantageous than other panel manufacturers in the current situation of tight IC supply.

 

Although South Korea's LGD and Samsung display have extended the production schedule of South Korea's LCD production line to meet the current strong market demand, they are still actively moving into new products. In order to further expand the OLED market, lejin will expand the capacity of Guangzhou OLED factory in the second quarter of this year. In 2021, although Samsung's displays fell out of the list due to the convergence of production capacity, the new qd-oled products are expected to officially enter the market in the fourth quarter of this year, and the shipment volume is expected to reach 2 million in 2022.