China's No. 1 Panel Producing Countries Needs to Be Vigilant for Disorderly Investment

In 2016, China's display panel industry experienced the most intense investment year, with an average of 28 billion yuan of investment each month. This is the number obtained by the 21st Century Business Herald reporter at the recent China Langfang International Economic and Trade Fair. According to further data, in 2016, the 12 panel projects that were commissioned, started construction, and newly signed in mainland China totaled 335.8 billion yuan. It is expected that by 2019 it will surpass Korea, Japan, etc. and become the number one producer of panel production. The "display everywhere" in the Internet of Things era opened up a huge space for the panel industry. The panel industry in China has grown rapidly. However, due to the low value-added products, the growth rate of the industry's turnover is relatively low. At the same time, a large number of upstream materials and equipments that rely on imports have become a major shortcoming in the industry. At present, the signs of disorderly investment in the panel industry have initially revealed that the blind establishment of local industries, the influx of non-leading enterprises, and the blooming of industrial layout are not conducive to the healthy development of the industry, and the panel industry is also facing the hidden danger of structural overcapacity; Iteration also brings new variables for the industry in the development direction. 2019 is expected to become the number one panel producer “Over the next three years, it is expected that mainland China will continue to maintain high-speed growth in AMOLED and ultra-high generation investment. The new investment will exceed RMB 500 billion.” Liang Xinqing, Secretary General of the Liquid Crystal Branch of the China Opto-Electronics Industry Association, said during the above-mentioned meeting. 21st Century Business Herald reporter said. Xu Zheng, professor of Optoelectronics Technology Research Institute of Beijing Jiaotong University, believes that investment in the Chinese display panel industry is growing rapidly. On the one hand, due to the broad Chinese market, investors are extremely optimistic about the panel industry; on the other hand, local governments strongly urge the industry. stand by. China is a major producer of application products such as televisions, mobile phones, tablet computers, and notebooks. The demand for panels is large. With the arrival of the IoT era of the Internet of Everything, the application of “display everywhere” is promising, and the screen will be used in more scenarios such as vehicle terminals, smart wear, smart home, etc., which makes all investment entities favor the display industry. There is plus. As the panel industry has driven a large amount of investment, local governments are also enthusiastic about this, and they have also given a lot of preferential policies in terms of land and taxation, and even many local governments directly invest in the industry. “A panel factory needs at least 30 billion yuan to invest, OLED may have to be 40 billion, and the investment is relatively large. Many local governments are directly injecting capital into these production lines.” Xu Zheng said. Qu Zhizhi's report shows that in 2019, the global panel industry will form a three-legged situation in mainland China, China Taiwan region and South Korea, in which the proportion of panel supply area in mainland China will reach 35%. Liang Xinqing said that China will surpass South Korea in 2019 and become the number one panel producer. It is noteworthy that China’s investment in the panel is mainly concentrated in the manufacturing process in the middle reaches of the country, while the upstream materials and equipment supporting capabilities are heavily dependent on imports. The accumulated investment amount is far lower than the panel, and the industrial structure is in an “instability” state. The upstream materials or components of the panel industry mainly include liquid crystal materials, glass substrates, polarizers, and backlight LEDs. Xu Zheng said that this link is a short board for the panel industry. On the one hand, it is because foreign countries started earlier than China and their research and development patents. It has been laid out in advance; on the other hand, domestic investment in R&D is insufficient. "On these aspects of technology research and development, few domestic companies are willing to invest money, and they all want to wait for someone else's ready-made technology." Beware of disorderly investment leads to overcapacity Let Liang Xinqing worry that the panel industry is exposed signs of disorderly investment. On the one hand, some companies do not consider the conditions of technology, capital, talent, etc., blindly build the line; individual companies use industrial policies, various resources provided by local governments to promote the construction of the line is very obvious; on the other hand, in order to achieve the display industry When landed, many companies purchased old lines without conditions and transferred the backward production capacity abroad to the country, increasing investment risks. "Disordered investment will probably lead to structural overcapacity in the industry, or even an oversupply; on the other hand, it will cause market chaos and cause vicious competition such as price war. The entire industry will pursue low costs and will definitely affect the normal profitability of enterprises. R & D investment, which led to industrial stagnation." Liang Xinqing said. Xu Zheng said that there is a lot of discussion in the industry about the panel industry being too fragmented. This industry is highly technologically intensive and highly investment-intensive. The focus of investment is concentrated, and geographical concentration is conducive to the healthy growth of the industry. As for investment entities, Xu Zheng believes that it should focus on supporting several leading panel companies, and it is not recommended to add a large number of other investment entities. The reality is that a large number of non-leading companies have poured into the panel area. "A lot of small businesses, even lacking the most basic industrial technologies, cannot build factories, but are digging for people at high salaries everywhere. Some companies' technology is based on the people they dig, which is detrimental to the healthy development of the entire industry." He said. Liang Xinqing stated that there are a lot of panel manufacturers in China, at least 123, and there are only two panel companies in South Korea, which are the main competitors in China. How to concentrate on the same strength as South Korea and it is urgent to solve the problem of the integration of large-scale and more competitive groups. problem. Geographically, Xu Zheng pointed out that the panel production has a clear economic radius of transportation, and there are a number of supporting companies around it. Only when the production capacity reaches a certain level and scale effect is achieved, is it necessary to set up supporting enterprises. It is worth noting that the development of technology is bringing new variables to the panel industry. Xu Xiaolan, deputy chairman and secretary-general of the Chinese Electronics Society, said in an interview with a 21st Century Business Herald reporter that the emergence of LED in the display panel area had directly led to the sudden termination of the CRT display industry and required a high degree of attention to this area's forward-looking technology. Development, alert to some disruptive technology has caused a huge impact on this industry. Liang Xinqing introduced that the current low-temperature polysilicon (LTPS), oxide semiconductor (Oxide) and other new technologies are continuously improving production levels, small-size active matrix organic light-emitting diode (AMOLED) technology has been widely used in the high-end market, super high-generation line It will meet the needs of future TVs in large size and high resolution. Technologies such as narrow-frame and in-cell/on-cell technologies have also become increasingly mature, which will provide new development space for the panel industry. Liang Xinqing stated that the original single-scale competition will adopt resource integration to form a technical system or a diversified competition among the groups. In the field of technology, it is necessary to pay close attention to what kind of speed the AMOLED uses to replace the current LED. The industry leading companies accelerate the cultivation and ripening of the market-oriented application of new display technologies and make use of technological progress to maintain the gap. Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, TV boxes, smart TVs, smart TV software, etc. Answering questions.