The panel manufacturer of the Korean panel company in China has finally settled. Recently, panel maker LG Display announced that the Chinese government has approved the construction of an OLED panel manufacturing plant in China.
It is understood that the new OLED panel factory will be built through a joint venture company, LGD holds 70% of the joint venture company. The registered capital of the cooperative company is about 2.3 billion US dollars.
In terms of production capacity, the new LGD plant is expected to start mass production in the second half of next year, when the monthly output of its large-size OLED panel will increase from the current 60,000 to 130,000.
According to Nail Technology, in fact, LGD can do China's new OLED panel factory, and it is indeed a lot of trouble. Because the Korean government did not support LGD to settle the OLED panel project in China. The Korean government regards the OLED industry as a protective industry in the country. Technology leakage is strictly forbidden, because the OLED panel production line is very conservative in foreign construction.
Until the end of 2017, the South Korean government had the conditions to release LGD's panel factory plan. However, it was reported that the Korean government proposed three conditions: First, improve the 'localization' rate of materials and equipment. "," refers to South Korea. Second, in order to prevent technical outflows to develop security measures, the Korean government checks the technical confidentiality of Chinese factories every six months. Third, a new generation of large-scale OLED technology needs to be researched and developed in Korea, and related equipment needs to be Korean production.
In any case, LGD's OLED panel project was finally approved by Chinese and Korean government agencies. It is not easy. So, once LGD successfully built this OLED panel factory in China, what impact will it have on the TV industry? There are at least three points:
First, it stimulated Huaxing Broadcasting and Television, and BOE and other panel factories accelerated the layout of OLED production lines.
This year, TCL Group issued an announcement that it will build a new 11th generation line, mainly producing and selling 65, 70, 75-inch 8K ultra-high-definition liquid crystal (LCD) display and 65, 75-inch OLED display. The project is organized by TCL Group. , Huaxing Optoelectronics and Shenzhen Major Industrial Development Fund jointly completed the investment, plans to officially achieve mass production in March 2021.
BOE currently has the mass production capability of small-size OLED panels. In the field of large-size TV panels, BOE also has the technical capability of 10.5 generation lines. It is not very difficult to lay out large-size OLED panels in the future. Previously, BOE has always believed that OLED panels have limited demand. The technology is still not perfect, so it has not been vigorously developed.
With the rapid launch of the LGD project and the rapid release of production capacity, it is possible to stimulate Huaxing, a domestic panel giant such as BOE to accelerate the construction of new OLED panel projects to seize the high-end market.
Second, more Chinese color TV companies will receive LGD supply.
Previously, the industry revealed to Nail Technology that LGD's OLED production capacity is limited, coupled with its desire to maintain the high-end properties of OLED TVs, so it has not supplied more TV companies than core partners. With the long-term OLED panel in Guangzhou Newly built, more TV companies including Internet TV brands in the future will be able to obtain LGD's OLED panels. This is also an inevitable requirement for LGD to accelerate the development of the entire OLED TV industry.
Third, the price of OLED TV is expected to decline.
The reasons for hindering the development of OLED TVs, in addition to the production capacity and technical factors, the price is too high. If LGD's OLED panel in Guangzhou is put into production smoothly, coupled with the driving of Huaxing, BOE and other panel companies will accelerate the construction of OLED panel factories. The massive release and the intensification of competition among related TV companies will inevitably lead to an overall decline in the price of OLED TVs, which objectively contributes to the expansion of this market.
For LGD, the OLED industry cannot be lost, and the Chinese market is crucial to its subsequent development. For China's color TV industry, it is also a good thing to introduce an advanced production line and promote relevant technological progress and market upgrades.