Another high-generation panel production line was finalized! TCL announced on Wednesday that the company plans to reinvest to build an 11th generation ultra-high-definition panel production line, which mainly produces and sells large-screen 8K LCD screens and OLED screens over 65 inches and so on. The total investment is about 42.683 billion yuan. , Co-invested by TCL Corporation, China Star Optoelectronics and Shenzhen Major Industrial Development Fund, and plans to officially mass production in March 2021.
Aiming at the prospect of big screen and building 11th generation line
Previously, TCL had already established a 11th-generation line project under construction. It plans to achieve mass production in early 2019. TCL officials said that it will reconstruct and build 11-generation panel production lines. It is mainly optimistic about the development prospects of large-size, ultra-high-definition panel industry. According to statistics, Japan announced that it will achieve 8K video broadcasting at the 2020 Olympic Games. Television terminal manufacturers will successively release 8K TVs. China will become the largest consumer market of 8K TVs.
According to reports, part of the OLED production capacity planned at the same time for the t7 project is also a major aspect of the industry, aiming to achieve a breakthrough in domestic large-size OLED products, breaking the LGD's dominance in the field of large-screen OLEDs, and guiding the OLED industry. The trend of technology trends. In the aspect of technology reserves, Huaxing Optoelectronics uses Guangdong Juhua as a platform to establish joint printing and display labs upstream and downstream of the industrial chain to accelerate the development and mass production of printing process and technology. Guangdong Juhua as a national printing company And the “Flexible Display Innovation Center” is the first national innovation center in the display area. Currently, it has successfully developed 31-inch printed OLED displays and 5-inch printed QD displays. The key technologies to be printed are mature and industrialized. The application will greatly reduce the production cost of large-screen OLEDs and promote the rapid development of large-size OLED panel markets.
As a giant company in the panel industry, China Star Optoelectronics has always been the TCL Group's profitable dairy cow. Last year, China Star Optoelectronics' sales revenue and profits both hit a record high, and LCD TV panel shipments ranked the fifth in the world. Among them, 32-inch TV panel products have a market share. Second, the market share of high-size and large-size products such as the 55-inch UD remains the No. 1 in the country. In the first quarter of 2018, even when the panel industry as a whole was in low economic conditions, Huaxing still achieved sales revenue of RMB 6.46 billion. Profit before sales was 2.76 billion yuan, a year-on-year increase of 9.86%.
Does the high generation line have excess capacity?
Currently, global panel makers are constantly investing in the 10.5/11 generation line, and the t7 project is once more overweight. Li Yaqin, deputy general manager of Quzhi Consulting, pointed out that t7 will be the 6th 10.5/11 line for global investment determination. The 10.5/11th generation lines are the 10.5 generation line of BOE Hefei, 10.5 generation of BOE Wuhan, 10.5 generation of Foxconn Guangzhou, the t6 project of China Star Optoelectronics, and the 10.5 generation line of LG Display Paju.
Investing in so many 10.5/11 generation lines, will continue to push up the panel production capacity in the next few years. According to Quzhi Consulting, the global 10.5/11 generation line capacity will reach 64 million square meters per year by 2022, equivalent to 8.5 generations worldwide. 50% to 60% of line capacity. These capacities are also rapidly increasing during the four years from 2018 to 2021. Although the size of the TV panel does require more generational production capacity to meet, this rapid expansion of production investment is likely to bring As a result, the capacity supply has grown faster than the demand growth rate, and this may be the main contradiction faced by the TV panel market in the coming years.
Li Yaqin emphasized that once the supply grows too fast, it will cause oversupply in the short term. It will not only hurt the profits of the panel maker, but also the profitability of the upstream and downstream industries. The oversupply will lead to a rapid decline in prices. Although the overall brand cost will decline, It will also bring a wait-and-see mood for customers and consumers to hold their coins for purchase, which is not conducive to healthy development of the market, and upstream suppliers will also face pressure to reduce costs.
However, according to Liu Buchen, a senior observer of the color TV industry, there is no need to worry too much about overcapacity. With the deepening of the Internet of Things and the large-size TV market, as well as the growing demand for mobile terminals, the market needs a higher generation line, and for large screens. The demand has also evolved from the previous color TVs to the display of more terminals (including medical markets, conventions, shopping malls, and other commercial markets). The demand is huge.