According to AUO's annual report, from the perspective of the supply side of the panel, according to the data from the market adjustment agency IHS Technology, the annual growth rate of the global TFT-LCD production area reached 3% last year. With the new generation of the industry, the annual production capacity is expected to grow faster than this year. 5%, but the mass production learning curve of the large-scale line with new technology remains to be observed.
AUO said that all application market products are developing towards higher value demands, such as higher resolution, thinner and lighter design, integrated touch panel products, and integration of software and hardware systems. The industry competition under market supply and demand is not only From the expansion of production capacity, we have entered the competition of technological capabilities and value integration.
AUO pointed out that TFT-LCD is one of the flat-panel display products and is currently the mainstream technology in the market. At present, the global TFT-LCD manufacturers mainly focus on panel manufacturers in Taiwan, Korea, Japan, and China; the panel makers in various regions are From the perspective of large-scale market trends, Korean panel makers are committed to the development and introduction of AMOLED panel technology, and have closed some of the old TFT-LCD production lines.
The focus of Japanese panel makers is based on medium and small size; Mainland manufacturers continue to build high-generation TFT-LCD production lines, but the product is still dominated by bulk consumer panels, and the production size is also limited due to the relative concentration of the next-generation lines; With limited new capacity, the company continues to introduce differentiated size and high-tech products.
In the small-to-medium-sized market segment, smart phones are being developed for larger sizes, higher resolutions, and lighter and lighter power consumption. There are layouts for low-temperature polysilicon (LTPS) and AMOLED production capacities in various countries, and Korean panel makers mainly focus on AMOLED production capacity. Japan And Taiwan has increased LTPS production capacity. China has capacity investment in both areas.
AUO stressed that competition in the panel industry has now shifted from a capacity expansion competition to new technologies and high value-added products such as UHD 4K Ultra High Resolution, curved TVs and curved desktop display panels, or full-frame borderless TV panels All of them are production techniques that have barriers to entry and long learning curve, can meet the diverse needs of consumers, and have the opportunity to create higher value.
AUO said that in the short-term business development plan, in terms of capacity expansion, in response to the continued growth in customer demand in the market, it will increase quality production capacity with appropriate investment, including mass production of the 6th generation LTPS plant in Kunshan, mainland China in November 2016. Last year, 25,000 substrates were produced. It is expected that the capacity of the Houchi 8.5-generation plant in Taichung will increase by 25-30 million pieces this year.