In the past two years, the price of the large-size LCD TVs has plummeted. The price of 4K 55-inch TVs is almost the price of the ‘cabbage’. So everyone is happy to buy TVs. But behind them are LCD manufacturers, especially Chinese LCD manufacturers. So the low prices have also caused serious losses for manufacturers. BOE, the world’s largest LCD panel maker, has announced that it will stop investing in LCD capacity.
In the past two years, domestic companies in the LCD were investing heavily. So that’s not accidental BOE has become the world’s largest LCD panel factory.
As LCD panels are gradually becoming unprofitable, companies, such as Samsung, LGD, and Japan’s Matsushita have either significantly reduced LCD production lines or simply exited the LCD field. Even domestic companies will also reduce LCD capacity investment. Among them, BOE chairman Chen Yanshun also issued a statement. He said they will stop investing in LCD production lines in the near future. Although he expects the LCD industry to pick up in Q1 or early Q2 next year.
Currently, the LCD panels are the BOE’s main source of income. So stop investing doesn’t mean to give up immediately LCD. But it means that the future is no longer a substantial investment period in LCD production capacity. BOE will shift the focus of the investment in more high-end OLED, Mini LED and Micro LED, and other panel areas.
At the moment, BOE has three sixth-generation flexible AMOLED plants, namely the Chengdu plant, that was mass-produced and shipped in 2017, the Mianyang plant that was mass-produced and shipped in July of this year, and the Chongqing plant, that began construction last year. Among them, the Chengdu factory AMOLED panel has been used in at least 10 smartphones, covering Huawei, OPPO, VIVO, and other brands.
BOE predicts that this year’s flexible AMOLED panel production capacity will reach 20 million pieces, with a global share of 18%.