LCD panel future: education tablet market can be expected

After two consecutive years of low tide in the panel industry, in 2013, due to the lack of new capacity, the operation of the world's major panel factories gradually returned to the right track, and they gradually went out of the mud to achieve profit. In the second half of 2013, the market is more concerned that since 2014, a new round of China-centered capacity competition is about to begin

At present, the world's four major panel production bases are South Korea, Japan, China and Taiwan. Compared with the other three, they rely on export as the main means of digesting production capacity. Mainland China is the only panel production base with a huge domestic demand market. This advantage is not worthy of the book in the era when the demand for panels in the past has skyrocketed. However, as terminal applications such as LCD TVs, monitors, and notebook computers have entered a period of high growth, the ability to control demand is superior to technology and capital. Above cost and yield, it is the most critical condition for expanding production capacity.

  TV into a high generation line market

  The opportunity for the LCD TV market to shift to China will be transformed into the most powerful estuary for China to develop the 8.5-generation line.

In the past, the Japanese and Korean brands were the dominant players in the global LCD TV market. As the penetration rate of LCD TVs in Europe and the United States reached a peak, the focus of LCD TV market sales has gradually shifted from Europe, the United States and other countries to China, India, Central and South America, etc. Market country.

According to TrendForce's survey, among the top 10 TV brands in the world in 2012, Chinese brands only have 3 seats, with a market share of 15.8%. By 2013, the number of Chinese TV brands entering the top 10 in the world has increased to four. Market share rose to 21.9%. The highest ranked TCL officially entered the top three brands in the world. The price competition of LCD TVs is becoming increasingly fierce. China has ample labor, a complete spare parts supply chain, huge production capacity and efficient production management. These advantages will gradually enlarge and affect the overseas TV market. In addition to China's TV market in the future, in addition to domestic demand. It will also become the most important TV manufacturing base in other parts of the world. These will be transformed into the most powerful estuary of China's development of the 8.5th generation line.

Smartphone into the digestive capacity pillar

The huge demand for smart phones will form an important pillar for stabilizing the production capacity of China's new panel makers after investment.

After five years of change, smartphones have officially entered a mature period. When the difference in hardware specifications becomes less and less obvious, the price becomes the main basis for consumers to purchase smart phones. In addition to the four well-known leading manufacturers of “China, China, Cool, and United”, Chinese mobile phone brands also have recent up-and-coming manufacturers such as Xiaomi. The commonality of these brands is that they do not follow the boutique strategy of international companies such as Apple or Samsung. It is to promote smart phone products with high quality and low price.

According to TrendForce's survey, the global market share of Chinese branded smartphones in 2010 was only 6%. In 2013, the proportion of China's mobile phone brands has increased significantly to 32%, and the shipments have increased from 17 million units to 300 million units, which is equivalent to an increase of more than 17 times in four years. It is estimated that the proportion of Chinese brands in 2014 will reach 36%, a considerable number of 420 million units.

In the past, 8.5-generation lines up to 2200mm x 2500mm were generally positioned to produce large-size TV panels. However, with the refinement of exposure equipment and process line width, coupled with the mass production of large-generation thin glass substrates, the future Products produced on the 8.5 generation line will not only be limited to TV panels. The huge demand for smart phones will form another important pillar for stabilizing the production capacity of China's new panel makers after investment.

Education tablet demand can be expected

   The development of the education tablet market is the next demand explosion point that the industry is very much looking forward to.

At present, the development history of tablet PCs, which are very popular in the consumer market, is only a short period of four years, especially low-priced tablet PCs are more popular among consumers. This trend is particularly evident in the past two years. The biggest competitive advantage of Chinese white-label tablets is the low price.

According to TrendForce's survey, 95% of the global tablet computer market is in the hands of brand manufacturers in 2010, but from the situation in 2013, the market share of white-label tablets has exceeded 20%, and the price continues to affect the tablet. The sales performance of the computer in the next few years, the white card tablet is expected to gain 20% to 30% of the global market share.

   In addition to the tablet PCs with consumer, entertainment and leisure as the main demands, the development of the education tablet market is the next demand explosion point that the industry is very much looking forward to. The business model of education tablet promotion and consumption flats are far-fetched. China has a huge demographic dividend. The total number of educated population is even higher in the world. The government has a high influence on industrial development. If it can promote the promotion of domestic education flats through policies. It will drive a large number of 7-inch to 10-inch panels, which will become the third foot to support the 8.5-generation investment.

China's continued investment in new capacity in the 8.5-generation line will lead to a new watershed in the global panel industry competition in 2014, and the competitiveness of the panel industry in each region is bound to be reshuffled. Taiwanese manufacturers lack domestic demand market and lack strong brands as the seaport. They have high dependence on the mainland market. Once the ability of mainland panels to self-sufficiency is rapidly improved, the operation of Taiwan panel makers will be the first to bear the brunt of the squeeze of order crowding effect. Suffered from the impact. The core of Korean manufacturers' competitiveness lies in their brand strength and technological excellence. However, in the near future, they face the challenge of slowing down brand growth and narrowing their technological lead. In the face of the raging mainland China, a hard fight may not be avoided.