On April 9th, the 5th China Electronic Information Expo opened at the Shenzhen Convention and Exhibition Center and was sponsored by the Ministry of Industry and Information Technology and the Shenzhen Municipal People's Government. The next generation information technology co-organized by China Electronic Information Industry Development Institute and China Electronics News Agency The Industrial Development Summit Forum was held in the same period. Chen Yanshun, vice chairman and CEO of BOE Technology Group Co., Ltd. attended the forum and delivered a keynote speech. He said: “China has become the main force in the development of TFT-LCD in the world. Now the rise of OLED technology has become an irresistible technology trend in the small and medium-sized fields. This will become a new opportunity for Chinese enterprises."
In recent years, China's flat panel display industry has developed rapidly and has become an important force in the development of the global display industry. Chen Yanshun said that after the development of the past 10 years, BOE has ranked among the top three global semiconductor display industries. In 2016, China's panel shipments worldwide have exceeded 21%, and it is expected that panel shipments will reach 33% by 2019. From 2016 to 2020, the global LCD market still maintains a stable growth trend. China will replace other regions to become the world's largest panel shipments.
According to Chen Yanshun, in the next five years, the TFT-LCD demand area will increase by more than 3% QoQ, mainly due to four reasons.
First, the trend toward panel size increases. 5 years ago, the size of the mobile phone was generally about 3.5 inches, and now TVs also show a large size trend. The average size of the display product will increase by at least 1.2 inches to 2 inches per year, and the average TV size will also increase by about 2 inches. The increase in the average size of the panel is an important reason why the LCD will maintain a large increase in the future.
Second, there has been a great change in the market structure. In general, traditional LCD is mainly used in five major areas such as mobile phones, laptops, and televisions. In the future, the application of display products will be more extensive and in-depth in various professional market segments. These market segments will be combined with the Internet platform in the future to form a lot of Internet terminal products. This market space will be very broad. BOE will also seize this opportunity to continuously increase the market segmentation in the future.
Third, it shows that product performance has been continuously improved. While 4K TV penetration continues to increase, 8K will also become a trend. In 2016, the Rio Olympic Games used BOE 8K ultra-high-definition television for the first time to broadcast live games. The next Tokyo Olympics in Japan will also promote 8K technology. Therefore, BOE will also jointly promote the 8K display +5G communications market. In addition to 4K and 8K products, the performance of other display products is also increasing.
Fourth, the production capacity structure is transformed. The previous 6th generation line mainly produces 32-inch LCD panels. To meet market demand, it has now been used to produce small-sized mobile phone screens. In October of last year, BOE began to cut small-size mobile phone screens on the 8.5th generation line to increase the utilization efficiency of production capacity to meet the market demand. Nowadays, the 8.5-generation line has been widely used to produce various sizes of display products. At the same time, the old production lines are also being eliminated, making the overall global production capacity decline. For these reasons, in the next five years, although several companies in the world still plan to invest in new production lines, the overall market will maintain a balance between supply and demand.
Chen Yanshun said that China has become the main force in the development of TFT-LCD in the world, and OLED is a new opportunity for enterprises in mainland China. Now OLED technology has risen, and it has become an irresistible technological trend in the small and medium-sized fields. The data shows that OLED shipments are expected to exceed 800 million units in 2020, and it is expected that the CAGR of AMOLED shipments will remain at around 25% from 2015 to 2021, and will become the mainstream of the future mobile phone market.
Chen Yanshun said that from the technical point of view, OLED has advantages in terms of high color gamut, high endurance, high contrast, and thinness, making the mobile phone use a lot of OLED technology; from the point of product form, OLED, especially flexible AMOLED technology will make the phone form Great changes have taken place. Full-screen mobile phones and OLED flexible mobile phones will be launched one after another. From the market perspective, as OLED technology matures and the yield rate increases, OLED products will be used in the future in addition to wearables and mobile phones. Such as the development of large-size direction.
After 10 years of deployment, BOE achieved certain achievements in the field of semiconductor display. LCD panel shipments ranked first in the world, among which smart phone panels ranked first in the world with 25% and tablet PCs accounted for 38%. Ranked first in the world, notebook computer panels ranked first in the world with 21%, and monitors and TV panels were the second and third in the world respectively.
Chen Yanshun said that as a provider of Internet of Things technologies, products and services, BOE has always insisted on innovation. Every year, BOE will invest 7% of its sales revenue in research and development, so BOE is in a superior position in terms of new patent applications, revenue growth, profitability, and flexible display layout.
For future BOE's development strategy, Chen Yanshun said that BOE will expand its display technology, expand new applications, integrate information technology and integrate life and technology innovation. First of all, in terms of display, BOE has a total of 11 semiconductor display production lines, of which 8 have been in operation and 3 are under construction. In terms of OLEDs, BOE focused on the layout of small-size flexible AMOLEDs (including the sixth-generation flexible AMOLED production line in Chengdu and the sixth-generation flexible AMOLED production line in Mianyang). In addition, there is rigid AMOLED production capacity in Ordos, as well as large-size AMOLED lead wires in Hefei. Secondly, in terms of the smart system business, BOE will deepen the fields of smart manufacturing, smart retail, and other areas, and create new value for Internet of Things services. Finally, in terms of health services, BOE combines semiconductor display, sensing and other technologies with life sciences to conduct cross-border innovation. China Electronics News
2.LG Display: Google's investment of 900 million U.S. dollars has not yet made a lot of customers;
Tencent Technology News, foreign media reported that the search giant Google (microblogging) is interested in South Korea's LG Display Company invested 900 million U.S. dollars, Tuesday, LG through the Korean Stock Exchange regulatory documents, said the matter has not yet made a final decision.
According to previous news, due to the tight supply of mobile phone OLEDs (organic screens) in the world, and Google, a web search service provider involved in mobile phone manufacturing, plans to invest more than one trillion won for LG Display Co., which is equivalent to US$900 million, Google hopes to be able to Get a stable cell phone organic screen supply.
It is well known that Apple had previously invested in upstream component suppliers to obtain a stable supply of components. It is not surprising, therefore, that Google has adopted such a similar approach.
However, according to the Korean Herald website, on Tuesday, LG Display quickly made a rumor on Monday's news. The company said that no final decision has been made regarding Google’s investment.
The company also said that many customers are very interested in the global organic screen market.
Google launched its own smartphone with the brand of Pixel last year, but it was HTC, Taiwan's Taiwanese company, that helped Google in product design and OEM manufacturing. According to reports, Google’s mobile phone sold only 500,000 units last year, basically "Entertainment" is a move in the global mobile phone hardware market, Google has almost no influence, and its more contribution is to provide free Android operating system for mobile phone manufacturers worldwide.
According to media analysis, Google Pixel's failure in the market is due to the fact that not many mobile operators are willing to sell Google mobile phones. In addition, Google does not have the experience and strength to sell this mobile phone in multiple countries around the world (including cooperation with operators. Relations, after-sales service, maintenance, etc.).
With Apple's first use of organic screens, this year's global handset organic screen has unprecedented tension, and even exotic goods can live. Samsung Display Co., Ltd. almost accounts for more than 90% of the world's organic mobile phone screen production capacity, but the company's production must first ensure Samsung's own mobile phone needs and orders of major customers Apple. In addition, Chinese panel companies such as BOE and Tianma Microelectronics already have organic screen production capacity, but they are significantly behind Samsung Electronics in terms of technical indicators and may not be able to meet the needs of all customers for high-end mobile phones.
In organic screen technology, LG Display and Samsung Display Company are inseparable, but in the past, LG attached too much importance to the organic large screen used by the TV, and the production capacity was insufficient on the mobile phone screen. In the middle of last year, LG Display executives publicly stated that the company’s investment in the field of mobile phone screens obviously lags behind its rivals.
Last July, LG Display stated that it will invest US$1.75 billion to increase the production capacity of small-size organic screens, mainly for smartphones and tablets.
According to industry agencies, this year and next year, the handset organic screen market will be in short supply. This will also affect many Chinese mobile phone manufacturers through the organic screen from low-end access to high-end mobile phone transformation plans.
In addition to LG monitors, Japan Display Corporation and Sharp Corporation are also rapidly increasing organic screen mass production plans. In the future, they will also provide organic screens to Apple, an old customer.
3. BOE breaks into the downstream to move closer to the Samsung model;
Display companies in the upper reaches of the industry chain are marching downstream, wanting to extend from the cold screen to the live terminal brand. At the 5th China Electronics and Information Expo (CITE), which was opened on April 9th, many panel companies including BOE, Tianma, Visionox and others displayed smart living solutions in addition to the “screen” concept. Consumer-oriented end products.
Taking the BOE as an example, after the company launched its own TV brand, it also cut into medical directions. In addition to BOE, after the acquisition of Sharp by Foxconn, the intentions of the panel and the terminal are more obvious. Right now, more and more companies with screen technology have begun to move closer to Samsung's industrial model.
Into the downstream
Judging from the production line, currently, BOE has 11 semiconductor display production lines, of which 3 are under construction. They are Hefei's 10.5th generation TFT-LCD production line, Chengdu's 6th generation flexible AMOLED production line, and Mianyang's 6th generation flexible AMOLED. production line. Among the three newly planned production lines, one is the highest generation line in the world, which focuses on large-size, ultra-high-definition, and two AMOLED lines aiming at the new display technology in advance.
In terms of panel display, BOE's investment in more than a decade has produced a scale effect regardless of the production line or output. Of course, due to the cyclical fluctuations in the panel, the company has experienced ups and downs in earnings. According to the financial report, BOE’s profit fell in the first half of 2016, among which, panel prices were low and exchange rate changes were the main reasons.