High prices for panels have to wait for half a year

From the traditional LCD TVs, monitors, to fresh VR devices, and on-vehicle displays, the market price of LCD panels needed has soared recently. Although apparently due to lack of supply, there are three deep-seated reasons:
1. From the beginning of 2016, the decision of the panel manufacturer to limit the production capacity of the market oversupply has been made;
2. The Korean Department represented Samsung and LG as the main suppliers of the liquid crystal market. In 2016, they frequently shut down the production line to focus on OLED display technology.

Samsung is a world-class panel maker
3. The natural disasters such as earthquakes frequently occurring in the main production areas of the panels also affected the market supply to a certain extent. On the 21st of this month, Japan's Tottori had just experienced a 6.6-magnitude earthquake, and Sharp's factories in the region were affected.
According to reports from research institutions, in October 2016, LCD TV panels, 40-inch LCD panels offer 130 US dollars, 43-inch LCD panels offer 138 US dollars, an increase of up to 10 US dollars; and 50-inch LCD panels offer 159 US dollars, an increase of 11 US dollars Even the price of the most serious 32-inch LCD panel, which had previously been oversupply, reached 74 US dollars, or 2 US dollars.

LCD panel production line
With the arrival of the global sales season at the end of the year, especially the peak consumption of the Chinese market such as Sept. 11, Shuangdan, and Spring Festival, the supply of LCD panels will continue to deteriorate. According to industry estimates, in the first half of 2017, the LCD panel market will continue to be in short supply, and panel product prices will continue to rise.
After the round of price increase cycle, information already available shows that on the supply side, Chinese companies continue to invest heavily in high-generation liquid crystal production lines. BOE, China Star Optoelectronics, China Electronics and Shenzhen Tianma will accumulatively have 262.5 billion yuan in capacity expansion. Capacity above the 8th-generation line will also increase by leaps and bounds in the next three years.

LCD panel
On the demand side, IHS Markit predicts that the annual growth rate of large-size TV products will be 5%-6% in 2016-2018. The rise of large-size TV sets is also an important trend in the future TV market pattern, but it is limited by the initial production capacity and yield rate of high-generation cables. The gap will remain long-term.
Both the demand for market growth and reserve capacity have been met, and the TV LCD panel industry remains bullish for a long time. Smart phones, smart wearables, VR, car and other small and medium size are rapidly turning to OLED technology, and due to the lucrative nature of such products, and Chinese panel companies involved in the late, in the face of positive performance in the initial market, there is a voice that Chinese manufacturers helpless There are a few brands of Linyi squid that actually begin to retire and form a network. OLED production lines such as BOE and Huaxing Optoelectronics are also under construction. It is believed that the pace of China's panel technology in catching up with the advanced world level will only grow. fast.
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