Reasons for the most popular Chinese LCD panel man

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Reasons for Chinese LCD panel manufacturers to invest against the trend

on December 7, BOE, a large Chinese LCD panel enterprise, enhanced its equipment despite the deterioration of the market. On December 2, BOE started the construction of the most cutting-edge panel factory in Hefei, Anhui Province, in the inland region. It will invest about 2trillion yen against the trend in the next three years, hoping to reduce costs through mass production and compete with Japanese, Korean and Taiwan competitors such as sharp and Korean LG monitors. Strive to win the world championship

strive to become the most cutting-edge production base for manufacturing the world's largest panels - at the opening ceremony of the "10th. 5th generation" factory held in Hefei, Anhui Province on the 2nd, in the face of executives from partners from Samsung Electronics, Haier, Chuanjing electric and other countries, BOE President chenyanshun emphasized this. Officials from the local government, the national development and Reform Commission, the Ministry of industry and information technology and other central ministries and commissions also attended, showing the trend of "national plan"

mass production of panels over 65 inches

Hefei is an inland city, which is very famous as an ancient battlefield in the romance of the Three Kingdoms. BOE will invest 40billion yuan in an area equivalent to 17 Tokyo Dome stadiums to build large glass substrates (2. 94 meters × 3。 37 meters), the most cutting-edge factory of Sharp's "10th generation". This is to cope with the rapid expansion of demand in China. 6 to reach the required number of layers may require multiple production stages. The mass production voltage of large TV and display panels with more than 5 inches should be successively applied to each conductor pair connected between 1 same cut of other conductors and metal layer (if any) or water. The monthly production capacity reached 90000, which was put into operation in 2018. For BOE, which has advantages in smart and tablet computer panels, it will become a real challenge to enter the "main position"

the parent of BOE is the state-owned electronic tube factory in Beijing. After institutional restructuring in 1993, the predecessor Beijing Orient Electronics was formed. Now the first letter of "BOE" is adopted as the 2016 International Plastics and Rubber Exhibition in Dusseldorf, Germany It will be grandly opened as the name of the English company on October 19, 2016. After entering the 2000s, BOE launched the production of liquid crystal panels in an all-round way. It ranks fifth in the world in the field of TV panels, and seventh in the world in small and medium-sized panels such as smart panels. Including Hefei, three factories will be quickly established on the premise of putting into operation in order to expand market share

however, the current LCD panel market is deteriorating. According to the statistics of ihstechnology, an American research company, in the past three years, the price of 55 inch panels has been reduced by about 40%, and the price of 5-inch high-precision panels has been reduced by about 70%. In addition to the unsatisfactory sales of TVs and smart phones caused by the economic slowdown, the increasing production and investment of Chinese enterprises such as BOE technology also accelerated the rate of price decline

backed by the government

Wang Dongsheng, chairman of BOE, doesn't seem to mind the current downturn. Wang Dongsheng believes that the price of standard display products decreases by about 50% every 36 months. According to this empirical rule called "Wang's law" within the company, if fish can swim under the screen, the price will naturally decline. In order to achieve the next leap, BOE will not hesitate to make a large investment

BOE has strong backing behind its strong posture. BOE is a "quasi state-owned enterprise", and the leading major shareholder is the state-owned asset management center subordinate to the Beijing municipal government. There is no need to worry about capital problems at all. The new factory in Hefei is also supported by the local government. The new factories scheduled to be built in Fuzhou, Fujian Province in the South and Chengdu, Sichuan Province in the interior also have strong backing from the local government

but if we only pursue scale, we will not go far. The monthly sales of BOE in 2015 increased significantly by 44% over the same period last year, to 364. 200million yuan, but the net profit increased by only 7%, about 2billion yuan

Wang Dongsheng's policy of opening up new markets through technological innovation is supported by experienced technicians hired with high salaries from LCD developed countries and regions such as Japan, South Korea and Taiwan. BOE's R & D expenses account for% of its overall sales. It will also vigorously develop new businesses in wearable terminals, automobiles and other fields. And will step up the establishment of mass production technology of organic EL panels that are expected to become the next generation of panels. BOE hopes to achieve technological innovation while enhancing production capacity and challenge the world's first throne

will Chinese LCD panels be the same as excess steel

not only BOE, other Chinese LCD panel enterprises are also predicting that the "cycle" of LCD panel market fluctuations will enter a boom period next, and are continuing to implement bold equipment investment

bo Lianming, CEO of csot, a subsidiary of TCL group, which ranks second in China in the field of liquid crystal panels, said that it would fall into oversupply in 2016. However, the company will increase the capacity of its factory in Shenzhen, Guangdong Province. It will also build a new high-precision panel factory in Wuhan, Hubei Province, focusing on the recovery of demand after the downturn

Tianma microelectronics, which focuses on the production of small and medium-sized LCD panels for intelligence, will invest about 450 billion yen to promote the production preparations of two factories. Wang Lei, general manager of Xiamen Tianma, a production subsidiary, confidently said that customers want us to produce high-precision panels

the result of Chinese LCD panel manufacturers' increasing production capacity may also be similar to the swamp of oversupply in which similar photovoltaic and steel manufacturers have been selected

Chinese LCD panel manufacturers are ready for the current deterioration of earnings and continue to invest. Manufacturers in Japan, South Korea and Taiwan need to seriously deal with this desperate strategy

global glass () Department

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