1. Set! TCL second line 11 will be a large-size OLED 'escort';
TCL's second 11th-generation ultra-high definition new display device production line planned in Shenzhen (the Huaxing Photoelectric t7 Project) was finally finalized and was officially signed on May 22, 2018. The ceremony was held at Huaxing Optoelectronics G11 Industrial Park in Shenzhen Guangming New District. China Star Optronics t7 project aims to invest in the construction of a 11th-generation ultra-high-definition new display device production line with a capacity of approximately 90,000 pieces of 3370mm x 2940mm glass substrates in Guangming New District, Shenzhen. It will produce and sell 65-inch, 70-inch and 75-inch products. 8K ultra-high-definition display, 65-inch OLED, 75-inch OLED display, etc. The total investment of the project is approximately 42.683 billion yuan. This project was jointly invested by TCL Corporation, China Star Optoelectronics and Shenzhen Major Industrial Development Fund. It is planned to be completed in March 2021. Formally achieving mass production. Although the industry is still concerned about panel overcapacity, it is still optimistic about this planned t7 production line because it is part of TCL's semiconductor display business and is in line with the new display industry. The demand, at the same time, there is TCL Multimedia as an important outlet for production capacity. In addition, IHS Markit senior analyst Wu Rongbing believes that the t7 project is bright In the case of OLED printing, Huaxing Optoelectronics has exhibited a 31-inch printed OLED panel with a certain level of technical strength. After three years, even if the print OLED yield is not very satisfactory, it can maintain a certain pilot production capacity. It is a fast-growing OLED product. Necessary basis. In the announcement released that night, TCL Group emphasized that the t7 project also planned for the production capacity of some OLEDs in order to achieve a breakthrough in domestic large-size OLED products and guide the trend of new technology trends in the industry. In terms of technical reserves, Huaxing Optoelectronics takes Guangdong Juhua as a platform, establishes a joint printing and display laboratory on the upstream and downstream of the industrial chain, and accelerates the development and mass production of printing process and technology. Guangdong Juhua, as a national printing and flexible display innovation center, is the display area. A national innovation center has successfully developed a 31-inch printed OLED display and a 5-inch QD display. To be printed, key technologies are mature and industrial applications are implemented, which will significantly reduce the production cost of large-screen OLEDs. , To promote the rapid development of the large-size OLED panel market, TCL, as the first company to layout and print OLED panels, will become The next generation of new display technology leader. Previously, TCL has a 11th-generation line t6 project under construction, TCL said that t6 plans to achieve mass production in early 2019. The re-investment and construction of 11 generations of panel production line, is obviously optimistic about large Dimensions, industry development prospects for ultra-high definition panels. Along with consumer upgrades and new display technology drivers, the TV panel market is shifting to large-scale, ultra-high definition displays. The market demand for high-end color TVs of 65 inches and above is growing rapidly. 8K products are expected to be in 2018. Years have entered a period of rapid development. Public information shows that Japan has announced that it will achieve 8K video broadcasting at the 2020 Olympic Games. Television terminal manufacturers will successively release 8K TVs, and China will become the largest consumer market for 8K TVs. This will be held in April this year. At the 6th China Electronics Information Expo, China Star Optoelectronics introduced the 85-inch 8K IGZO GOA liquid crystal display. It is the first oversized 8K4K liquid crystal display device that successfully applied back-channel etching (BCE) IGZO process technology to GOA circuits. Huaxing Optoelectronics 85-inch 8K module won the '6th China Electronic Information Expo Innovation Award'. TCL selected at this time The second line of the 11th-generation line project was launched, apparently intended to preemptively strategically layout the large-scale ultra-high-definition panel market to meet the market demand for the growing 8K products in the next few years. Wu Rongbin said that the China Stars t7 project will further promote the large TV panel Size, it may be a few years, 55 inches will become the largest single size. It is understood that China Star Optoelectronics' operating efficiency and profitability continue to lead the world, since 2013, China Star Optoelectronics EBITDA profit margin indicators continue to maintain industry Leading level. According to the financial report, in 2017, BOE's net profit margin was 8%, and Huaxing Optoelectronics reached 16%. In the first quarter of 2018, even if the panel industry as a whole was in low economic conditions, Huaxing still achieved sales revenue of RMB 6.46 billion. The profit before tax, depreciation, amortization and amortization was 2.76 billion yuan, a year-on-year increase of 9.86%. The performance was better than that of peers. A spokesperson of China Star Optoelectronics under the TCL Group told the China Electronics News: “The operational efficiency of the two 8.5 generations of China Star Optoelectronics has been To maintain industry leadership, we are confident that we will copy the experience of the 8.5-generation line to the 11th-generation line. 'But Wu Rongbing believes that the China Star Opto-electronics 8.5 generation line concentrates resources only Familiar products, so high efficiency. As to whether the 11th generation line can successfully replicate the high efficiency of the 8.5 generation line remains to be seen. At present, the global panel manufacturers are constantly investing in the 10.5/11 generation line, t7 project is once more overweight. Zhiyao deputy general manager Li Yaqin pointed out that t7 will be the 6th 10.5/11 line of global investment. The first 5 lines of the 10.5/11 generation are the BOE Hefei 10.5 generation line, BOE Wuhan 10.5 generation line, and Foxconn Guangzhou 10.5 generation. Line, China Star Optoelectronics t6 Project, LG Display Pao 10.5 Generation Line (Note: According to QunZhi Consulting, the Huizhou Zhengzhou 11th Generation Line Glass Substrate is not finalized and the project cannot be finalized yet.) Invest in so many 10.5/11 generation lines. In the next few years will continue to push up the panel production capacity. According to Quzhi Consulting, the global 10.5/11 generation line capacity will reach 64 million square meters per year by 2022, equivalent to 50% to 60% of the global 8.5 generation line capacity. These production capacities all increased rapidly during the four years from 2018 to 2021. Although the large-sized TV panels do require more generational production capacity to meet, the rapid expansion of production investment is likely to result in a rapid increase in capacity supply. The demand growth rate, and this may be the main contradiction faced by the TV panel market in the next few years. Li Yaqin emphasized that once the supply is growing 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 Profits. Oversupply brings rapid decline in prices. Although the brand cost of the entire machine has declined, it will also bring a wait-and-see mood for customers and consumers to wait for the purchase of coins, which is not conducive to healthy development of the market. Upstream suppliers will also face reduced costs. Pressures. Qunzhi Consulting believes that with the deepening of the Internet of Things and the growth in TV market demand, the market needs a higher generation line. However, there should be a gradual development process, otherwise it will hurt the sound development of the industry. Li Yaqin appeals to the relevant ministries and commissions of the country. From the policy point of view, guide local governments and enterprises to conduct rational and orderly investment and avoid unordered investment behavior. China Electronics News
2.427 billion yuan and then cast a big screen battle TCL into the OLED loose Korean monopoly?
42.7 billion yuan and then cast a big screen battle TCL into OLED loose Korean monopoly?
Our reporter Huang Xingli reports from Beijing
'Lack of core and less screen' has always been the collective pain point of China's electronic information industry. In the panel industry, especially the production of OLED panels representing a new generation of display technology, Samsung, LG and other Korean companies have been monopolized.
In recent years, domestic panel makers represented by TCL and BOE have invested heavily in OLED panel production lines. On May 22nd, TCL announced that it invested nearly RMB 42.7 billion in Shenzhen to launch the second 11th generation line to seize the commanding height of oversized panels. At the same time, the layout of large-scale printing OLED panels. So, with the large number of Chinese OLED production capacity released in the next two or three years, whether it can break the current monopoly status?
150 billion yuan to the panel
On May 22nd, TCL Group (3.220, -0.02, -0.62%) announced that it plans to invest in the construction of a 11th-generation ultra-high-definition new display device production line (t7 project) in Shenzhen, with the main production and sales of 65', 70 ', 75' 8K Ultra HD display and 65' OLED, 75' OLED display etc.
It is reported that the total investment of the project is about 42.683 billion yuan, which was jointly invested by TCL Corporation, China Star Optoelectronics and Shenzhen Major Industrial Development Fund. It plans to officially mass production in March 2021.
According to Li Dongsheng, chairman of TCL Group, at present, Huaxing Optoelectronics has built two 8.5-generation lines in Shenzhen. The t6 project is Huaxing's first 11-generation line factory. The project will complete the capping of the main plant in 12 months and realize the main equipment in 18 months. Moving in, created a new Shenzhen speed. Huaxing is confident that the t6 project can be completed and put into production in advance, becoming the most efficient project on the hillside of 11 generations.
According to public information, China Star Optoelectronics is the operating entity of the semiconductor display business of TCL Group. TCL Group directly holds 85.7135% of equity of China Star Optoelectronics, and China Development Fund and Guangdong Yuecai Trust hold 11.0024% and 3.2841%, respectively. Fixed income, TCL Group will buy back in accordance with the investment agreement).
According to TCL sources, the T6 project currently under construction by TCL is scheduled to be mass-produced in early 2019. The re-investment and construction of the 11-generation panel production line will mainly favor large-scale, ultra-high-definition panel industry development prospects.
In recent years, TCL Group has invested heavily in Huaxing Optoelectronics Panel business. According to reports, currently there are five production lines under construction and under construction by China Star Optoelectronics, with a total investment of nearly RMB 150 billion. Among them, TV panel lines are built on Shenzhen, including two 8.5-generation lines (t1 and t2) and one 11-generation line (t6); small and medium-sized panel lines are all built in Wuhan, including a 6-generation LTPS-LCD line (t3) and an AMOLED line ( T4)
Industry analysts pointed out that with the upgrading of consumption and the drive of new display technologies, the TV panel market is shifting to large-scale, ultra-high-definition displays. The market demand for high-end color TVs of 65 inches and above is growing rapidly. It is expected that 8K products will enter high-speed development after 2018. Period. 'TCL chose to invest in the second 11th generation line project at this time, apparently intended to preemptively strategically layout the large-size ultra-high-definition panel market to meet the market demand for the growing 8K products in the next few years. 'The source said.
Breaking the monopoly of OLED Korea?
OLED technology is recognized as the next generation of display technology. In recent years, domestic color TV companies have launched new OLED TVs. Market research company IHS Markit pointed out that in 2017, in the high-end TV market of over $2,500, the OLED TV market accounted for 51.3% of the total. For the first time, it surpassed the LCD market share. In 2018, the proportion of OLED TVs in the high-end TV market of US$2,500 will rise to 70.7%, making it a mainstream product in the high-end market.
However, for domestic color TV manufacturers, they have to face the embarrassing situation that large-size OLED panels are heavily dependent on imports. At present, Samsung Display and LG Display, two major panel makers in South Korea, have monopoly positions in small and medium size and large-size OLED panels. It is also difficult to shake within.
While announcing the construction of the t7 project, the TCL Group issued an announcement that the t7 project planned for the production capacity of some OLEDs at the same time in order to achieve breakthroughs in domestic large-size OLED products and to guide the industry's new technology trends.
Regarding this, industry sources have pointed out that as the only panel maker with a clear OLED production capacity in the 10.5/11 line construction, this means that TCL may want to use OLED technology to achieve 'overtaking' of large-size panel technology.
Currently, in addition to TCL, other panel companies such as BOE are also accelerating investment in OLED production lines. According to public information, the BOE Chengdu OLED production line has been put into production, and the Mianyang production line has also been capped at the end of 2017, and subsequently announced in early 2018. The investment plan for the Chongqing production line.
The industry believes that under the heavy investment of domestic panel companies such as TCL and BOE, the monopolistic status of Korean companies on OLED panels will loosen.
IHS expects that by 2022, the proportion of Korean panel makers in global OLED production will fall from 93% in 2017 to 71%, and the market share of Chinese panel makers will increase from 5% in 2017 To 26% in 2022.
Huaxing Optoelectronics and BOE Who Make More Money
At present, China Star Optoelectronics is the main source of profit for the TCL Group.
According to the 2017 annual report released by TCL Corporation, it achieved revenue of 111.58 billion yuan in 2017, net profit of 3.54 billion yuan, of which net profit attributable to the mother was 2.66 billion yuan, an increase of 66.3% year-on-year. Among which, Huaxing Optoelectronics has improved its production capacity and maintained full-scale sales. The sales income was 30.48 billion yuan, an increase of 17.6% year-on-year, and the profit before tax, depreciation, amortization was 11.49 billion yuan, an increase of 111.1% year-on-year.
According to data provided by TCL, in 2017, the sales revenue and profit of China Star Opto-electronics reached a record high, and the number of LCD TV panel shipments was the fifth in the world. Among them, 32-inch TV panel products accounted for the second largest market share in the world. The market share of size products is the highest in the country.
It is reported that with the completion of the Huaxing Opto-electronics t6 project and the t7 project, the market share of China Star Optoelectronics in large-size products will rise to the top three in the world (the area of production capacity will reach 14%, second only to LGD and BOE).
According to IHS statistics, in the domestic TV panel market in 2017, China Star Optoelectronics and BOE shipped a similar area, which was 16.71 million square meters and 16.74 million square meters, respectively.
However, in terms of profitability, the net profit margin of Huaxing Optoelectronics continued to be higher than that of BOE in volume production of the first production line in 2012. From 2017 data alone, BOE achieved 93.8 billion revenues in the year with a net profit margin of 8%. , And China Star Optoelectronics revenue of about 30.48 billion, net profit rate of up to 16%.
It is worth noting that in the industry's low boom, in the first quarter of this year, China Star still achieved sales revenue of 6.46 billion yuan, and EBITDA of 2.76 billion yuan, an increase of 9.86% year-on-year. Its performance outperforms its peers.
In this regard, industry analysts believe that China Star Optoelectronics mainly supplies first-line brand customers, and its brand customers including TCL, Samsung, Hisense, Skyworth, Changhong, and Konka accounted for more than 80% of shipments. The excellent customer structure keeps Huaxing Optoelectronics relatively Low sales costs, while continuing to maintain full-scale sales.
'TCL Multimedia, as an important exporter of China Star Optoelectronics, accounts for 40% of Huaxing Optoelectronics' TV panel shipments. The advantages of TLC Multimedia and China Star Optoelectronics' vertical industry integration are becoming more and more significant. Industrial synergy advantages also make Huaxing Optoelectronics more resilient. The ability of industry cycles to fluctuate. 'The person said. China Times
3. BOE Zhang Yu: Leading Technology Upgrade China has become a leader in the global display industry;
Recently, Zhang Yu, Vice President of BOE Technology Group and General Manager of Anhui Region, said in an interview with Xinhua.com that BOE continuously improves the company’s independent research and development capabilities, and builds a technology innovation system that combines enterprise, research, and market as the mainstay. , made more remarkable results.
The following are the main contents of the interview:
Xinhuanet: In recent years, what achievements have been made by BOE in technological innovation?
Zhang Yu: BOE is a pioneer and leader in China's semiconductor display industry. In recent years, BOE Technology Group has persisted in breakthroughs in innovation and continuously improved the company’s independent research and development capabilities. By integrating internal and external advantages, it has built a business-oriented and market-oriented approach. , A combination of production, education, and research in the technological innovation system, and achieved more remarkable results.
Since 2003, Beijing, Hefei and other places have successively built and built the 5th generation TFT-LCD production line, the 6th generation TFT-LCD production line, and the 8.5th generation TFT-LCD production line, ending the mainland's 'non-individual LCD display'. The “PingPing Times” has truly realized the localization of a full range of LCD screens in China. In 2017, the first China-based BOE investment project, the world’s second-generation 6-generation flexible AMOLED production line launched mass production, and opened a new era of flexible display; in December, the highest generation in the world Line - BOE Hefei's 10th-generation TFT-LCD production line was put into operation, which created a new milestone in the development of the global display industry, marking that China has become a leader in the global display field.
BOE Hefei Corporation has made several major breakthroughs in different technical fields, such as large-size ultra-high-definition LCD panel manufacturing technology, large-size AMOLED panel manufacturing technology, metal oxide technology, organic film technology, copper technology, optical alignment technology and so on.
In the first quarter of this year, BOE smart phone LCD display, tablet PC display, notebook computer display, and display monitor shipments all ranked first in the world, and TV display shipments ranked second in the world.
(Source: Xinhuanet Reporter: Li Dongbiao)
4. Pass Foxconn to reduce initial investment in Weizhou plant
According to an Asian Nikkei commentary citing informed sources, the $1 billion screen factory invested by Hon Hai (Foxconn) in Wisconsin may change from originally planned production of large panels for television to production of apples, automobile manufacturers, etc. Small Panels to Reduce Initial Expenses. The report pointed out that the change in Hon Hai's plan will coincide with the continued oversupply of global TV screens. Many domestic companies such as BOE are actively expanding their production. Producing large screen panels will require more complete regional supply. Chain and larger initial investment in equipment.
Sources said: Hon Hai originally planned to build a 10.5-generation panel plant suitable for producing large panels, but they later thought that building a sixth-generation or 8.5-generation panel plant may be more feasible and efficient because they can do so from Asia. Move some equipment directly in the past.
The sixth-generation panel maker mainly produces small panels for mobile phones, tablets, laptops, and wearable devices. The 8.5-generation panel maker is more suitable for panels, notebooks, monitors, and TV panels. Both can produce some medical products. Niche products for vehicles.
The source of the Asian Nikkei commentary also believes that Foxconn is planning to supply the iPhone with screens after the plant is put into production.