LCD panel industry productivity eliminated

The impact of the withdrawal of the home appliance subsidy policy exceeded the market’s general expectation. TV sales remained sluggish, resulting in large-size shipments still not optimistic. In the face of the upcoming sales season, TV shipments did not improve, with the third quarter increasing. With the dramatic price reduction of panel size, the production capacity of major panel makers in the world will gradually shift to small and medium size. The profitability of small- and medium-sized panels will be greatly challenged. The technology will be backward and the small and medium-sized panel makers with backward production capacity will be affected. The prices of small- and medium-sized panels will be affected. Will decrease quickly.

TV demand overdraft symptoms gradually eased, good policy can be expected home appliance subsidy policy advance overdraft domestic demand for television, due to the durability of television, demand overdraft symptoms eased for a long time, but the symptoms of overdraft is gradually eased, is expected with 4K TV costs With the gradual reduction, the domestic demand for television will gradually appear. At the same time, in the face of a sluggish TV market, the country’s support efforts will increase, and a new round of support policies can be expected, but the support may be different.

The structural adjustment of products will eliminate some of the backward production capacity. With the rapid implementation of China's advanced generation line, it has a major impact on the global panel industry. The upgrading of production lines will increase the adjustment capability of the production line. The production line is limited, and technologically backward production capacity will gradually be eliminated. In particular, with the shift of high-generation line capacity to small and medium size, it will have a major impact on the entire industry. Because of the large number of customers and large product differentiation, small and medium-sized panels have imposed higher requirements on the marketing capabilities of enterprises. Domestic panel manufacturers will no doubt take advantage, and domestic terminals and panel companies will also strengthen mutual cooperation and will make comparisons with foreign companies. As a result, the elimination rate of global backward production capacity has further accelerated.