China's panel industry has entered a new phase. How can companies re-define future tasks?

In recent years, the rapid development of panel companies in China has gradually increased the global position of China's panel industry. Before 2009, mainland China had almost no right to speak in the global panel industry. COO Zhao Yong, COO of Shenzhen Huaxing Photoelectric Technology Co., Ltd. said with emotion. In the recent 10 years of rapid development, the strength of the Chinese panel industry has been unprecedented.

However, the Chinese mainland's panel industry is still large but not strong. If we want to achieve full-scale catch-up with South Korea, we must further increase the supporting rate of domestic display industry. Recently, the fifth flat panel display upstream and downstream industry technology market docking exchange conference and the first Chinese new display The Industrial Chain Development Contribution Award Recognition Conference was held in Wuhan. The conference was jointly organized by the China Electronic Materials Industry Association and the Liquid Crystal Branch of the China Optics & Optoelectronics Industry Association. It attracted more than 260 display industry chain upstream and downstream company representatives to attend this conference, many of which Outstanding enterprises held a lively discussion on how to improve the localization support of the display industry.

The production capacity has risen first, and the domestic production has achieved small results

The continuous expansion of the panel industry in Mainland China is reshaping the global panel industry pattern. Hu Chunming, Deputy Secretary General of the Liquid Crystal Branch of the China Optics-Optical Electronics Industry Association, pointed out at the fifth flat panel display upstream and downstream industry technology market matchmaking conference, according to the China Optics and Optoelectronics Industry Association. The LCD branch and a number of consulting organizations surveyed data. In 2017, the LCD panel industry in mainland China has surpassed South Korea in terms of revenue scale and shipment area, and has become the world’s largest.

In the OLED industry, although mainland China is a latecomer, with the increasingly mature technology line, there is also an opportunity for catching up with China in the Chinese mainland. Minister Ge Xing of BOE Technology Group Co., Ltd. pointed out that in 2017, the proportion of OLEDs in Mainland China was 6%. , It is expected that by 2022, the total output of OLED panels in mainland China will reach 41%.

The prosperity of the panel industry in mainland China is continuing to drive localization and localization. From 2012 to 2014, China launched a policy of localization and localization of the panel industry, encouraging localization of panel materials and equipment, including encouraging foreign countries. Equipment and materials companies set up factories in mainland China and achieved certain results. Zhao Yong pointed out at the fifth flat panel display upstream and downstream industry technology market matchmaking meeting that the localization coverage of Huaxing Optoelectronic Materials has increased from 52% in 2013 to 2017. In 63% of the year, the localization rate of equipment increased from 12% in 2012 to 42% in 2017.

According to Yang Xiao, Director of OLED purchasing at Tianma Microelectronics Group, Tianma's localization of over 60% of the materials was achieved. In 2017, the localization rate of membrane materials was 81%, and the proportion of panel materials made in China was 41%. The goal of Tianma in the future is to customize consumer products. The localization of the products will be fully realized, and the customized FPCs and backlights will be made domestically. The proportion of domestically produced panel materials will reach 50%, and the proportion of OLED materials will reach 20%. Gexing said that in recent years, BOE materials and equipment have been purchased locally. The proportion of the amount of money continues to increase. In 2017, localization of materials accounted for 34% of the total, and the coverage of localization of equipment has reached 32.7%. Future BOE will accelerate the promotion of the proportion of localized purchases, and promote the development and improvement of the domestic upstream industry chain. .

At the same time, a number of outstanding display industry supporting enterprises have also emerged in mainland China, which will further promote the process of supporting localization.

It is understood that Xin Yihua clean transfer robot is mainly used for the glass substrate transport of flat panel display production line. The cleanliness of the product control, movement speed and accuracy, the size and weight of the transportable substrate, etc. have reached the international advanced level, filling the above areas in China Blankness. Hefei Xin Yihua Intelligent Machine Co., Ltd. Relying on the development and industrialization of “Xinxie Huagao Generation Clean Handling Robots”, the fifth flat panel display upstream and downstream industry technology market docking exchange meeting and the first China's new display industry chain development contribution award. At the commendation meeting, it won the 'China Display Industry Chain Excellence Contribution Award'.

Beijing Chuangchuang North Technology Co., Ltd. developed the first domestic display chip supporting 4K2K resolution, the first FHD/HD AMOLED display driver chip in China. Beijing ChuangNei North Technology Co., Ltd. relied on 'high-resolution panel driver IC R&D and Industrialization 'acquired 'China's display industry chain outstanding contribution award'.

In addition, there are more outstanding display industry supporting companies that have received industry recognition. For example, Hangzhou Gelinda Electronic Materials Co., Ltd., Shenzhen Huaxing Optoelectronics Technology Co., Ltd., Ordos City Yuansheng Optoelectronics Co., Ltd., and they are in the industry chain. Upstream and downstream integration innovations have made important contributions. In the fifth panel display upstream and downstream industry technology market docking exchange meeting and the first China's new display industry chain development contribution award recognition meeting on the 'China Display Industry Chain Collaborative Development Award'.

Shenzhen Huaxing Optoelectronics Technology Co., Ltd., Hangzhou Gelinda Electronic Materials Co., Ltd., Changzhou Qiangli Electronic New Materials Co., Ltd., and Beijing Huada Jiutian Software Co., Ltd. have an industry-leading and supporting role in localization rates. Industry Chain Excellence Contribution Award'.

Tianma Microelectronics Co., Ltd., Beijing Beixu Electronic Material Co., Ltd., Wuhu Dongxu Optoelectronics Technology Co., Ltd., Shijiazhuang Chengzhi Yonghua Display Material Co., Ltd., Jiangsu Hecheng Display Technology Co., Ltd., Ningbo Jiangfeng Electronic Material Co., Ltd., Luoyang High-tech Sifeng Electronic Materials Co., Ltd., Ningbo Jizhi Technology Co., Ltd., Wuhan Jingdi Electronics Group Co., Ltd. is in the leading position in some aspects of localization support, and has a certain demonstration role. It has obtained the outstanding contribution of China Display Industry Chain. prize' .

BOE Technology Group Co., Ltd., AU Optronics (Kunshan) Co., Ltd., Rainbow Display Devices Co., Ltd., Merck Optoelectronics Materials (Shanghai) Co., Ltd., Dalian Bonded Area Collide Chemical Technology Development Co., Ltd., Shenzhen Sanliop Optoelectronics Co., Ltd. Technology Co., Ltd., Shenzhen Qingyi Optoelectronics Co., Ltd., Jilin Aolide Optoelectronics Co., Ltd. is in an industry leading position in some aspects of localization support, and has enhanced the competitiveness of the local panel, in the fifth flat panel display The downstream industry technology market docking exchange meeting and the first China's new display industry chain development contribution award recognition meeting won the 'China Display Industry Chain Special Contribution Award'.

Large but not strong, most of the core packages rely on imports

Although China's mainland has already taken off the 'Shadowless' hat, indicating that the industry's localization support is also being gradually promoted, but China's display industry still has big but not strong problems. Hu Chunming shows the upstream and downstream industry technology market in the fifth flat panel. At the exchange conference, it was pointed out that the total revenue of panel makers in China did not surpass the revenue of South Korea’s Samsung Display Co. and LG Display’s two panel companies. It shows that the main markets of domestic industrialization supporting companies are still domestic, and the brand awareness of overseas markets Lower.

There is still a certain gap between China's display industry supporting enterprises and foreign companies. Among them, Japanese and Korean supporting companies have relied on the rise of the local panel industry to gain all-round development. Whether it is materials or equipment, they have achieved absolute competitive advantages. Until now, domestic panel companies have also relied on their industry support.

If only from the global TFT-LCD glass substrate market, Chinese mainland panel makers rely heavily on foreign manufacturers, because more than 90% of the market share is concentrated in Corning, Asahi Glass, Electrical Glass, and Glass, etc. The Chinese mainland has been vacant on the glass substrates used in high-generation lines. At present, the 10.5-generation line of glass substrates that have been built or under construction in China is all dependent on foreign manufacturers.

In terms of materials, although there are few achievements in localization supporting enterprises, due to late start-up and insufficient accumulation of technologies and experience, there are many problems in the localization process of some core materials. It is still very difficult to obtain adoption by panel makers. Ge Xing in the fifth The panel display shows that the upstream and downstream industry technology market matchmaking exchanges pointed out that in terms of chemicals, driver chips, polarizers, and masks, due to the relatively weak technology of domestic suppliers, high-end products are not yet capable of production; in glass, target materials On the other hand, the quality stability of domestic suppliers is insufficient; in terms of liquid crystals, there is a lack of key core patents, and there are major patent issues.

Due to the problems in technical capacity, product quality and factory capacity of domestic supporting companies, some key materials have not yet been domesticated. Such as LTPS glass, flexible OLED glass, ACF, silver alloy target, Cu etching solution, PI substrate material Such technical barriers are high, and there is no corresponding technology and production capacity in the country. For example, color film resists, OLED organic materials, FMM and TPF/BF materials and other domestic manufacturers are not up to standard, and quality stability is insufficient.

Due to the weak foundation of domestic supporting companies, as of now, the raw materials of domestic panel companies mainly rely on imports. Zhao Yong pointed out at the fifth flat panel display upstream and downstream industry technology market matchmaking meeting that the cost of imported raw materials abroad is high and there is a lack of competitors. Let panel makers appear to be very passive in the business bargaining process. If the panel industry suffers from cyclical capacity shortages or abnormal accidents, panel makers' material supply security risks will be very high.

Domestic panel makers also hope that panel materials can be localized as soon as possible, but the verification cycle of materials is long, the cost is high, and the process of localization is very slow. As China Star Optoelectronics Factory is full, it cannot provide too many on-line testing opportunities for domestic manufacturers. There are many domestic The material supplier is full of doubts: The material quality is good, the price is very cheap, why does the panel manufacturer not test it? Zhao Yong explained that if the material is verified on the TV panel production line, from the first process to the end of the last process, it needs to be closer. A month's time. And each verification needs to cost the panel manufacturer at least 5 million yuan. 'The opportunity cost of verification is really too high, so we are very cautious.'

Compared with materials, the threshold for equipment is higher and the technical difficulty is even greater. A representative from Applied Materials of the United States disclosed that they had tried to transfer the panel equipment business to Asia, but due to lack of talents, the plan was eventually cancelled. The equipment industry places higher requirements on the technical strength, talents, and industrial foundation of a country or region.

If we only talk about the purchase amount of domestic equipment, the figures are not very good, and the localization of key equipment is not very high. At present, there are no high-precision equipment such as process core equipment, process front-end cleaning equipment, inspection equipment, defect repair equipment, and OLED exclusive equipment. To achieve localization. For example, array exposure machine, color film coating machine, alignment film inspection machine, film repair system and OLED packaging system in particular.

Ge Xing believes that there are three major reasons constraining the development of domestic panel equipment companies. First, key components and technologies of the core main process equipment have been monopolized and blocked by foreign manufacturers for a long time; second, due to high equipment R&D costs and large capital requirements, industrial upgrading Fast, Domestic manufacturers do not have the strength to correspond; Third, due to the lack of processing capacity of domestic manufacturers, there is no corresponding production experience of high-generation production plants.

Need to clearly match the localization goals and support joint development

The continuous increase in panel production capacity in China further highlights the weakness of localization support. China's panel industry has entered a new stage. Liang Xinqing, executive vice chairman and secretary-general of the Liquid Crystal Branch of the China Optics and Optoelectronics Industry Association believes that the tasks of panel companies should be redefined. While the panel companies are expanding themselves, they must also take into account the development of localization support, so as to promote the electronic information industry.

Hu Chunming suggested at the Fifth Flat Panel Display Upstream and Downstream Technology Market Matchmaking Exchange that the “Three-year Action Plan for New Display Industries Beyond Development (2018-2020)” should set clear goals for localization support, for example, strive for In 3 years, China's brands of panels and upstream materials/equipment have been cultivated, and the overall matching rate of localized materials has reached over 80%. The matching rate of localized spare parts for equipment has reached 20%.

The relevant government departments are also aware that the time has come to further increase the localization rate. They are invoking resources to support the development of local supporting enterprises. Wang Weiwei, Director of the Electronic Information Department of the Ministry of Industry and Information Technology, pointed out at the fifth flat panel display upstream and downstream industry technology market exchange meeting. The Ministry of Industry and Information Technology is preparing to adjust the import equipment policy and will add some new varieties that have already been broken into the list of preferential policies. At the same time, the Ministry of Industry and Information Technology will also integrate various resources to support the development of localized materials and equipment enterprises.

Panel companies know that a strong panel industry needs to improve its localization support. On the one hand, it promotes localization through coordinated development of upstream and downstream industries. On the other hand, it also sets up a public R&D platform to try to break new technologies. Zhao Yong is on the fifth panel display. The downstream industry technology market matchmaking exchange pointed out that localization of materials needs to undergo special stages of team formation, in-depth communication, verification testing, equipment modification, and production capacity support. In the deep exchange stage, panel manufacturers need not only to communicate in depth with upstream material vendors. , also need to obtain the support and recognition of downstream mobile phones, TV manufacturers, this process is very complicated.

In addition, localized supporting companies need to establish R&D platforms together with domestic and foreign colleges and universities and powerful companies. Shenzhen Huaxing Optoelectronics Technology Co., Ltd., Tianma Microelectronics Co., Ltd., and other large-sized AMOLED laboratories in Shenzhen - Juhua Printing Displaying the public platform, Huaxing Optoelectronics has also established a small-sized AMOLED laboratory in Wuhan, the 'AMOLED Process Technology National Engineering Laboratory', to work together with universities, equipment, and materials manufacturers to jointly tackle the problem. The Deputy Secretary-General of the China Electronic Materials Industry Association Yuan Tong suggested that the government should increase the proportion of R&D projects to support upstream enterprises, and at the same time promote the enthusiasm of panel companies through the support of joint development projects (panel enterprises + materials/equipment companies).

Gexing suggested that material companies should speed up product R&D capabilities of domestic supporting materials companies; strengthen technical support capabilities and increase the added value of technologies; improve the product quality of domestic supporting material companies; seize the opportunity to speed up the development and introduction of new process products. Equipment companies should Accelerate the upgrading of equipment core technology capabilities; continue to improve the existing equipment processing, manufacturing and service capabilities; increase investment in equipment R&D and expand the scope of equipment manufacturing. BOE will also work hard to promote the joint development of upstream and downstream enterprises in the future to promote the localization of materials and equipment. Promote.

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