Chen Jianci, a market analyst at IDC, said that Taiwanese panel makers had been optimistic about the TV panel market in Mainland China and hoped to land a panel factory to avoid tariffs; even after the Ministry of Economic Affairs approved Taiwan's panel makers to land on 7.5-generation plants, they would actively fight for it. Landed at a higher generation of the 8.5 generation plant. The main consideration is to improve the competitiveness of the TV panel market in mainland China in addition to tariff factors.
However, things were counterproductive. Chen Jianchao pointed out that the panel industry has undergone rapid changes. After the Ministry of Economic Affairs approved the landing of the Taiwan panel manufacturer AUO with an 8.5-generation plant, the speed of building 8.5-generation panel plants in mainland China has accelerated, eventually causing panel manufacturers to build; On behalf of the factory, tariffs can be exempted. However, to avoid oversupply and causing panel prices to fall, AUO still had to abandon the 8.5-generation plant landing program.
He said that AUO gave up its plan to land on the 8.5 generations of traditional amorphous silicon panel plant to grab the TV market in mainland China. Instead, the original plan was to replace it with 6 generations of low-temperature polysilicon (LTPS) panels due to the low-temperature polysilicon panel technology level. Higher, locked high-end mobile phone panel market.
He explained that although AUO gave up its 8.5th generation plant to produce TV panels, TV panels produced in Taiwan are still sold. In order to minimize the impact of tariffs, they can only sell niche products with high gold content and relatively high prices. Mainly, pushing the product differentiation with the industry.
From a different point of view, he analyzed that compared with TV tariffs, mainland China has a lighter tax on panels, so Taiwan panel makers sell TV panels in mainland China, assemble panel modules in mainland China, and sell them to mainland China. TV brands also reduce the impact of tariffs.
Therefore, even though panel makers were concerned about tariffs, but were allowed to land and set up factories to exempt from tariffs, they faced competition in the bargaining competition. Panel makers considered the industrial order and environmental changes, and they let go of the tariff preferences that they had never been able to win, and gave up the original landing. Set up a factory plan to avoid competition in the Red Sea industry, and find other niche products to expand business opportunities.