The investment in panel equipment has reached a new high, and the mainland may become the largest FPD production area in the world
Shenzhen HongYu Semiconductor Co., Ltd. / 2021-08-30 09:18:41
As the continental panel plant continues to invest in new flat panel display (FPD) plants, making the mainland the largest FPD production area in the world, the mainland's investment in new FPD plants has been on the rise over the past few years, thus driving the sales of investment equipment for flat panel displays to a record high in the past three years.
IHS Markit pointed out that it is estimated that FPD equipment expenditure will increase by 89% to US $12.9 billion in 2016, and will rise to US $13 billion in 2017, and then slightly drop to US $11.8 billion in 2018 as the capital expenditure of new plants slows down.
Charles Annis, senior director of IHS Markit, said that by the second quarter of 2017, the mainland will surpass South Korea, which has dominated the market for a long time.
according to IHS Markit, due to the large number of sixth and eighth generation factories built in the mainland, BOE and Huaxing optoelectronics, the largest panel factories, have actively invested in 10.5 and 11 generation panel factories to produce 65 and 75 inch TV panels.
at present, FPD manufacturers in Korea and Japan have begun to transfer the liquid crystal (LCD) market to lower cost producers in the mainland, and began to close liquid crystal factories that need a large amount of land. While they still have technical advantages in AMOLED (active matrix organic light emitting diode), they have turned their attention to the production of AMOLED panels.
with the reduction of production capacity in other regions, the supply and demand of panels have also reached a balance, making the mainland panel industry more confident to build more factories.
IHS pointed out that between 2016 and 2018, the mainland will take 65% of all FPD equipment expenditure.
as FPD mobile phone applications are undergoing the first major change in technology, smart phone manufacturers quickly replace the LCD panel with AMOLED.
among them, Samsung is leading the latest technology, successfully applying its AMOLED display screen to Galaxy series products, and expanding the sales of AMOLED panels to other smartphone manufacturers seeking high-level display screens.
in order to catch up with market changes, panel factories in Korea and Japan are also eager to build new AMOLED factories. As for mainland manufacturers, through the assistance of regional government joint ventures, they will also build many AMOLED factories one after another. They regard AMOLED as a good opportunity to upgrade themselves from manufacturers in the later stage to leading manufacturers.
Annis said that at present, many new FPD plants have been built by various manufacturers, and the construction of most new plants is also the highest level. Therefore, generation 10.5 ~ 11 plants have great potential. Because of the larger equipment scale and facility requirements, the construction cost is more than twice that of general generation 8 plants compared with general generation 8 plants.
Almost all new AMOLED factories have plans to produce soft plastic screens. Most of these new plants adopt the highly complex LTPS-TFT (low temperature polycrystalline silicon) backplane technology with multi wheel hood, which requires more high-resolution exposure lines and other supporting equipment.
Annis said that the equipment value of the new soft AMOLED production line under construction is 50% higher than that of the rigid AMOLED plant just built a few years ago. Therefore, FPD equipment manufacturers are scrambling to increase production capacity to meet the needs of customers and fully grasp the current business opportunities.