Panels are not in the spot, mainland color TV companies postponed purchases in Taiwan

The heads of procurement of nine mainland color TV manufacturers who originally planned to go to Taiwan to purchase panels in early June postponed their trip to Taiwan. "I have encountered some troubles, and I have to start at the beginning of July at the earliest." Yesterday, Hao Yabin, deputy secretary general of the China Electronics Video Industry Association, told reporters. "This year, color TV companies' purchases in Taiwan may become the last centralized purchase." Zhao Maojun, deputy director of the Orviet Consulting Retail Research Center, said that this year's LCD panel market did not have the "panel shortage" that everyone worried about, so the mainland color TV manufacturers originally interested in purchasing The interest in this trip has been greatly reduced.

Color TV industry strategic transformation

Last year, the mainland purchasing group originally planned to purchase $2.2 billion of LCD-related components, with a total purchase of $4.4 billion.

LCD panels and LED chips have always been the two largest costs of color TV, accounting for more than half of the cost of the whole machine. Previously, LCD panels have been controlled by 10 foreign-funded companies such as Samsung, LG, Sharp and Chi Mei. It is understood that as a downstream enterprise, domestic color TV manufacturers sometimes even raise their prices to grab the panel. "Apple and other large US customers still have to bear high-value panels, and Chinese companies are getting more than 10% higher prices than Apple."

On May 18 this year, the website of the National Development and Reform Commission hoisted the "Notice on Continued Organization and Implementation of the Strategic Transformation Industrialization of Color TV Industry in 2010" to promote the restructuring of the color TV industry and improve the upstream supporting industrial chain.

Last year, the State Council announced the revitalization plan for the electronic information industry, which led to the release of high-generation LCD panel projects. The revitalization plan proposes to support the development and industrialization of key supporting materials for flat panel display, such as color filters, polarizers, liquid crystal materials, driver ICs, backlights, etc. for liquid crystal panels, glass substrates for plasma panels, Photosensitive electrode paste, phosphor, etc., as well as glass substrates, high-purity organic materials, wet chemicals, etc., which are matched with OLED panels.

Domestic manufacturers enter the upstream

Unlike foreign-owned color TV brands such as Samsung, LG, and Sharp, which have consistently adhered to the idea of ​​the entire industry chain, domestic appliance companies have only begun to move to the upstream sector in the past two years, striving to get rid of the limitations of "color TV assembly enterprises."

Lu Jianbo, deputy secretary-general of the Electronic Commerce Association, said that the LED components used in domestic home appliances are subject to Taiwanese manufacturers. Therefore, the price control ability of domestic enterprises is very weak, so the upstream industrial chain of enterprises is an inevitable choice. However, because the establishment of upstream bases is costly, corporate actions are still quite cautious.

Since 2008, domestic companies such as TCL, Skyworth, Changhong, Konka, and Tsinghua Tongfang have entered the upstream and established their own LCD module production lines.

For the liquid crystal panel industry upstream of the liquid crystal module, it is understood that among the domestic color TV manufacturers, only TCL has a liquid crystal panel production line.

Lu Jianbo said that if color TV companies enter the upstream industry in a big way, then color TV companies must speed up this process. With the rapid popularization of LCDs and the booming of OLEDs, the optimal investment time for LCD panels is fleeting.

"It feels a bit late now. In the last two years, the LCD TV market has been getting faster. Especially last year, the market was unexpectedly good. In this high-end industry, the industry boom is likely to pass in a year or two." Zhang Xingang, a senior analyst at the LCD network, told the media before.

High-generation project approval tightens

At the same time, the enthusiasm for investment everywhere is no longer "conniving." At the beginning of this year, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued the "Planning Industry Development Plan for 2010-2012", which will take back the production approval authority for high-generation (six generations and above) LCD panels from the local area. The start-up projects must be approved by the National Development and Reform Commission and the Ministry of Industry and Information Technology.

At present, among the high-generation LCD panel production lines in mainland China, the three 8.5-generation LCD panel production lines of Beijing Jingdong, Kunshan Longfei Optoelectronics and TCL, which have been built by TCL, have been officially approved. Other high-generation projects are waiting for approval. Up to five: Hefei BOE LCD panel line, Nanjing Sharp LCD panel line, Suzhou Samsung LCD panel line, Guangzhou LG LCD panel line and Chengdu Foxconn LCD panel line.

According to IDG data, the supply and demand relationship of LCD panels has been in a state of “supply in short supply” and “balance of supply and demand” in the spring of 2009 to mid-2010. However, experts predict that by 2012, when a large number of production lines of domestic and foreign-funded enterprises will start mass production, the entire LCD panel industry will “fall into a supply surplus situation”.

Zhao Maojun, deputy director of the Orviet Consulting Retail Research Center, said that there is currently no technology for manufacturing LCD panels in China, mainly introducing Taiwanese technology. Once technology leaders drive industry technology upgrades, domestic LCD panel companies may have to be passive. "But even so, it is inevitable for companies to enter the upstream. It is even harder to do it now."

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