2017,The profitability of the manufacturers will gradually improve
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2017,The profitability of the manufacturers will gradually improve

  • Author:mildtrans
  • Release on :2017-03-13
China, Taiwan and South Korea LCD panel manufacturers profitability will gradually improve. Due to the expansion of large-scale television demand in China, the United States and Southeast Asia, panel prices also rose from the second half of 2016. At the same time,Taiwan's Hon Hai Precision industry began in March 1st, the construction of large factories, the new plan is also continuously. But Manufacturers have to worry about the deterioration of supply and demand has emerged.

From the second half of 2016, with larger size products as the center, panel demand and prices both began to recover. In terms of panel prices for big clients, the 42-inch product in January 2017 was about $ 150 each, up 40% from mid-2016. 55-inch product prices rose 4%, 32-inch product prices fell 3% qoq, the two formed a sharp contrast.

Large manufacturers of performance had improved significantly.In 2016,AUO Optoelectronics October to December of the final gains and losses for the profit of 8.3 billion Taiwan dollars, Taiwan Group photoelectric also profit 10.8 billion Taiwan dollars, Compared with the huge losses in the same period in 2016, there has been a significant improvement.

In addition, changes in the supply level have also had an impact. In 2016, South Korea's Samsung Electronics seems to have shut down some of the LCD panel factories to turn the focus into the field of finer organic EL panels. Hon Hai Sharp Alliance hopes to increase the supply of its own TV panel, after the end of 2016 to stop the supply of products such as Samsung and other large TV panel customers, Which also led to people feel the panel market out of stock.

However, this good momentum will really continue?Xie Qinyi warned that the first in the second half of 2017 will be turned over to supply.2019 ~ 2020 supply growth may exceed the demand growth of more than 10%. The reason for this is that the large factories has introduced too many new plans.

China panel factories also expand their scale through active investment. January 2017, the mainland's largest panel makers BOE Technology Group (BOE) large and medium-sized panel shipments than LG monitors, ranking first in the world. BOE and mainland China's second panel maker Huaxing Optoelectronics (CSOT) and Hon Hai, is also building the 10.5 generation panel factory. Expected in 2018 the mainland's panel supply capacity (by area) will grow by about 40% over 2016, more than South Korea ranked the world's first.

The current market conditions improved this period, which will help promote the system conversion, panel factories are in the death or survival of the fork.