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The Current Situation Of Lcd Screens

- Jul 30, 2018 -

In fact, the demand for display screens in China's industrial control and vehicle market has increased rapidly this year. These displays are as customized as the current full-screen mobile phone displays, so they are a-Si below 5.5 generations. 

The production capacity of the panel production line is relatively heavy, which has also begun to crowd out the mobile phone display capacity list with lower profit margin.

The a-Si panel production line below 5.5 generations has undergone industry adjustments in 2016 and 2017. It has experienced overcapacity, cost inversion, price collapse, shutdown of the factory, out of stock, rising prices, high generation lines. 

The series of storms such as cut-in, price decline, customized full-screen rise, price stabilization, added value, and price increase have so far basically been in a state of relatively balanced supply and demand in the market.



And because of the market concentration of downstream end customers, the price confusion of downstream products has gradually subsided, and manufacturers that rely on low-cost competition may not be able to get support from terminal brand manufacturers. 

Even in order to maintain the stability of the subsequent market share, terminal brand manufacturers are more willing to cooperate with suppliers with actual business profits. For suppliers with loss of main business, even if the quotation is lower to compete for orders, terminal manufacturers will carefully allocate less capacity. 

The ration, in case its capital chain collapses, cannot be supplied normally.



So far, in addition to a small amount of materials, the localization of the mobile phone display supply chain has been very high, and the production technology and processing technology are also very mature. It is basically difficult for the relevant industry manufacturers to make the existing mobile phone display production costs large. 

The decrease in amplitude. 

In other words, the price of the mobile phone display will usher in a long period of stability in the case of ensuring that the panel factory is profitable.



Therefore, with the increasing demand for industrial control, vehicle and IoT display applications in mainland China, the small and medium-sized panel market in the Chinese mainland market will continue to maintain a low profit margin under the current balance of supply and demand. 

If China's IoT application market accelerates, future standard display screens will migrate to higher-generation panel production lines, and the highly customized display capacity may still be in a shortage of capacity.


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