Following the commencement of BOE’s first global production facility in Beijing in Hefei this year, the first Shenzhen Eleventh Generation Plant (T6) of Huaxing Optoelectronics also announced the completion of the first exposure equipment move-in at the end of this year. Light up the first panel, put into production in 2009.
It is worth noting that Huaxing Optoelectronics signed a contract with the Shenzhen Municipal Government and announced that it will build a second 11th-generation plant (T7). The company also plans to start production in 2019 with the addition of the Ultravision and Guangzhou 10.5-year-old plants. The continuous production of the ultra-large panel plants of 65 and 75 years and over 10 to 5 years will bring about excessive pressure on the global LCD panel production capacity after 2019.
According to Li Yaqin, deputy general manager of the mainland market research group, the T7 will be the sixth line of the 10th Five-Year Plan to determine the investment in the world. The first five are the 10th and 5th generation lines of BOE Hefei, and the 10th and 5th generation of BOE Wuhan. Line, Super Vision 堺 Guangzhou 10th Five-Year Line, Huaxing Photoelectric T6 Factory, Lejin Display Paju Tenth and Five-Year Line.
With the Tenth Five-Year/Eleventh Generation line, the panel production capacity will continue to increase in the coming years. Qunzhi Group predicts that the global production capacity for the Tenth Five-Year/Eleventh Generation Line in 2002 will reach 64 million square meters annually. It is equivalent to 5 to 60% of the world's 8.5-year line capacity. And these capacities are rapidly growing from 2018 to 2021.
The rapid expansion of production at the mainland panel plant may result in excess panel production capacity. Li Yaqin said that once the supply is too fast, it will cause oversupply in the short term, and not only the profit of the panel maker, but also the upstream and downstream manufacturers. Lee.
Although the cost of television brand factories can be reduced, this will not be conducive to healthy development of the market. Panel suppliers upstream will also face downward pressure on prices. The global panel leader Le Jinyin displays a net loss of 98.0 billion after tax in the first quarter. In terms of the Korean Won, this is the first time in six years, which also reflects the panel's excess capacity, which has affected the profitability of panel makers. The profit performance of AUO and Innolux in the first quarter was better than market expectations. Efforts to operational performance.
According to Xie Qinyi, general manager of IHS display department research, due to continuous new production capacity in the mainland, disrupting supply and demand in the market, the panel will face an oversupply situation for three years starting this year. The operating pressure of global panel makers will increase in the second quarter and may occur. Loss.