Look down on low-profit IT panel, Samsung plans to launch LCD display business
October 9, 2016
IHS
As China's liquid crystal display (LCD) production capacity continues to increase, and the resulting price competition, South Korean LCD panel makers quickly realized that the profitability of its liquid crystal display products will eventually lose, so they are the future of the OLED Display panel ...
IHS Markit pointed out that due to low profit margins, market growth slowed down, IT display panel LCD display manufacturers to give up the first product line. Samsung Display (Samsung Display) took the lead in this approach, last year, a five-generation plant (Gen 5) sold to a Chinese touch screen and module manufacturers. Samsung is also expected to carry out more plant restructuring, especially for the production of IT display panel factory.
"Hewlett-Packard (HP) and Lenovo (Lenovo) and other brands expect notebook computer display panel will be an excess, so panel inventory will remain at a very low level; Samsung shows this change, may be," said Jason Hsu, senior principal analyst at IHS Markit. Resulting in some brands in the third quarter of 2016 display panel shortage situation.
According to the company's latest factory reorganization plan, notebook LCD panel shipments may fall to 12 million units in 2016, down from 2017, according to the latest information from IHS Markit, which shows that 30 million notebooks will be on display in 2015. To 400 million. Shipments this year, compared with last year, 18 million, which means that some brands of notebook computer manufacturers may not find other sources to meet their production needs.
Looking back at the supply chain structure in the first quarter of 2016, it is clear that HP is the most affected by these changes compared to other companies - Samsung showed 1.1 million LCD panels to HP in the first quarter and 350,000 in the second quarter . However, HP has transferred orders to other panel makers, such as Innolux (Innolux), in order to obtain enough panels to meet their production needs.
BOE is another from the Samsung LCD display to withdraw from the initiative to benefit the company, BOE LCD panel shipments in the first quarter to 4.9 million in the second quarter increased to 7.2 million; expected 2017 BOE notebook Display panel production will reach 36 million.
IHS Markit noted that BOE started to produce notebook display panels in 2009 and is now among the world's largest suppliers of IT display panels; and BOE has a Gen 8 factory in Chongqing - the world's largest laptop Production base. Driven by more efficient logistics, BOE Chongqing's notebook PC display panel shipments are expected to grow rapidly next year.
LG Display and Samsung have supplied laptops to Apple in the past; however, the reorganization of the Samsung display plant (particularly the migration of Oxide panel capacity) has caused Apple to pay more attention to the future, May be a shortage of panel supply.
For this reason, Apple is expected to increase its new MacBook Pro a panel supplier to reduce the Samsung display business changes brought about by the risk. For its original MacBook Air series of notebook computers, Apple is considering the use of Chinese suppliers, this will be Apple's first use of Chinese manufacturers of LCD panels.
Samsung display from the liquid crystal display business in the exit, but also affected the wide viewing angle IPS and PLS display panel supply; Samsung has always been a global wide viewing angle panel, one of the major suppliers, its shipments second only to LG Display; In order to ensure IPS and PLS panel supply, the brand manufacturers must cut production in the Samsung display, looking for other alternative suppliers.
AUO is one of the qualified candidates, and its orders from brand notebook manufacturers are rapidly increasing. AU Optronics, Qunchuang Optoelectronics and BOE and other Chinese mainland panel suppliers are expanding IPS panel production capacity to meet the growing demand for display panels.