Chris Riegel, CEO of STRATACACHE, had a guest post on here a few weeks ago about the very rapid rise of China as a large-format LCD display manufacturer, and its implications.
Here’s more evidence of that sudden rise:
Business information provider IHS Markit has a new report out suggesting shipments of large format LCD TVs from China increased 10X … in the past year! A year ago, China had about 3.6 percent of the market for shipments of screens that are 60-inches or larger. Now the number is 33.9%, says IHS Markit.
Important to stress these are TVs, not the much smaller category of commercial displays, but the trend is very clear for LCD in general.
South Korean panel makers still accounted for the largest share in the 60-inch and larger LCD TV panel shipments, with a 45.1 percent share in the first quarter. However, Chinese panel makers’ share in the large LCD TV panel market is expected to continue to grow.
“When BOE’s B9 10.5G fab started its mass production in the first quarter of 2018, the industry expected that its full ramp-up would take quite a time due to a learning curve,” says Robin Wu, principal analyst at IHS Markit. “However, it did not take as long and BOE has become the largest supplier of 60-inch and larger LCD TV panels since the end of 2018.”
BOE accounted for 29 percent of the total 60-inch and larger LCD TV panel shipments in the first quarter of 2019. It is estimated that the B9 10.5G fab has reached its maximum capacity of 120,000 sheets in the first quarter of 2019.
ChinaStar also started to mass produce large LCD panels at its T6 10.5G fab in the first quarter. CEC-Panda and CHOT ramped up mass production at their 8.6G fabs to the maximum design capacity in the first quarter. Foxconn/Sharp is forecast to begin mass production at their Guangzhou 10.5G fab in the second half of 2019.
“As both Chinese and South Korean panel suppliers are focusing on large LCD TV panels, competition between them will become more intense, pressuring the price of large LCD TV panels even further throughout 2019,” Wu said.
According to the Large Area Display Market Tracker by IHS Markit, shipments of larger than 9-inch TFT-LCD panels reached 178.3 million units in the first quarter of 2019, down 1 percent from a year ago. By area, the shipment increased by 6.7 percent to 49.1 million square meters during the same period.
BOE led the unit shipments of large TFT-LCD panels with a 24.6 percent share in the first quarter of 2019, followed by LG Display (18.8 percent) and Innolux (16 percent). By area shipments, LG Display accounted for the largest share of 20 percent, followed by BOE (19.9 percent) and Samsung Display (14.1 percent).
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for more than 13 years. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He’s based near Halifax, Nova Scotia.