Xie Qinyi pointed out that this year's oversupply of panel makers may result in pressure for losses in the second quarter; the future panel industry can only be improved through mergers and reorganizations, or similar to Samsung's previous closure of the 7th-generation old factory.
He explained that although oversupply, in order to prevent land-plants from taking away market share, Taiwan factory would rather not reduce capacity utilization, there are two main reasons. First, the depreciation of production lines in the financial report is almost completed, and the production cost is low; Maintains capacity utilization to reduce component costs.
He emphasized that the Chinese mainland panel makers are actively expanding their production capacity, not only LCD panels, but also AMOLED panel makers. The panel production capacity is continuously rising, and it is expected to become the world's largest panel production capacity. The market share in 2023 or 2024 will reach 55%. .
He said that panel technology is leading in South Korea, but China’s production capacity has increased, especially the demand for flexible AMOED panels this year has been lower than expected. This has led South Korea’s Samsung and Legold Display’s investment in AMOLED panel to slow down, even though Korea will continue to lead the AMOLED panel in the future. The narrowing gap with China is still expected.
He expects that in 2022 China will have 19 panel plants for producing large-size panels, and 20 panel plants for producing medium- and small-size panels. This year's focus will be on the BOE 10.5 Generation Plant and the two 8.6-generation plants of the China Power Group.
In the face of competition in Mainland China, he bluntly stated that the 65-inch TVs assembled by TCL, the TV brand in mainland China, sell for US$628 each, but Samsung’s 65-inch TVs sell US at US$1,100, which is more than US$400. The panel also faces downward pressure on prices.