National Flat Panel Display Device Founded

According to the approval of the National Standards Committee, the first Standardization Technical Committee for Panel Display Devices was composed of 58 members from competent authorities, research institutes, quality inspection agencies, universities and enterprises, and enterprise committees accounted for more than half of the total. The undertaking unit is China Electronics Standardization Institute.

It is reported that the National Standardization Technical Committee for Flat Panel Display Devices is mainly responsible for the formulation and revision of national standards in the field of flat panel display devices such as liquid crystal display devices, plasma display devices, and organic light emitting diode display devices, and it is the counterpart of the International Electrotechnical Commission’s Panel Display Device Technical Committee.

China's flat panel display industry in 2013

In 2013, the development of the flat panel display industry in China continued to improve, the industrial scale steadily increased, the industrial chain became increasingly perfect, and industrial agglomeration was gradually formed.

First, the industrial scale continued to grow rapidly. The flat panel display industry represented by LCD panels in China reached 107 billion yuan, an increase of 44.6% year-on-year, and its global market share has increased to 11.4%. The output of LCD panels was 20.88 million square meters, an increase of 27% over the same period of last year. The sales volume was 20.85 million square meters, and the entire industry achieved full-scale sales.

The second is a significant improvement in business operations. The backbone enterprises such as BOE, China Star Optoelectronics and Tianma have achieved a total sales revenue of 62.3 billion yuan, a year-on-year increase of 41.6%, and a total profit of 4.38 billion yuan.

Third, the trade deficit has further narrowed. The LCD panel imports 49.58 billion US dollars, exports 35.86 billion US dollars, a trade deficit of 13.72 billion US dollars. On the basis of a sharp drop of 20.6% in 2012, it was down 2.4% year-on-year.

The fourth is the introduction of new technologies and application acceleration. Xiamen's 5.5 generation low-temperature polysilicon production line and Ordos 5.5-generation AMOLED production line have been put into production; backbone enterprises have developed new products such as high-resolution, low-power consumption and narrow bezel, and realized mass production.

The fifth is the gradual formation of localization support capabilities. Has been built to run full production line, local LCD TV panel self-sufficiency rate of more than 35%. China's backbone panel companies purchase local materials and equipment for over 15 billion yuan, driving nearly 100 upstream manufacturers.

It is expected that the growth of the global flat panel display market will tend to be flat from 2014 to 2016. As the global flat panel display industry shifts to China, the industry scale of China will continue to grow rapidly, and the self-sufficiency rate of LCD panels will steadily increase.

Flat panel display: high-end high-end "battle"

As a strategic emerging industry determined by the country, the flat panel display has rapidly expanded in recent years. By 2015, China will build nine 8.5-generation LCD panel production lines, which will surpass China’s Taiwan and become the world’s second largest flat panel display production base. With the increasingly perfect layout of BOE and Huaxing Optoelectronics production lines, China’s flat panel display technology has made breakthrough progress and panel self-sufficiency has increased significantly. The global share of LCD screens shipped in mainland China in 2013 has increased from 3.9% three years ago to 13%, and is expected to reach 25.66% in 2016.

In fact, mainland China has ended its "no-individual era of screen creation" for only 10 years. Compared with Japan, South Korea, and China's Taiwan, there is still a certain gap. The flat panel display industry in China is still climbing. Since the mass production of high-end LCD panel production lines in mainland China, the proportion of high-end panel products has been low, and high-end panel products are still mainly imported. Each year, mainland China purchases a large number of panels from Taiwan and South Korea to produce high-end televisions. From 2013 onwards, the high-end panel market has become more competitive: On the one hand, 4K ultra-high-definition TVs have accelerated their popularity, and liquid crystal technologies such as curved surfaces and OxideTFTs have become hot spots; on the other hand, OLEDs adopting next-generation display technologies have been promoted by Korean manufacturers. In TV mass production, South Korean manufacturers also shifted their investment focus from LCD to OLED.

In this situation, flat panel display manufacturers have become a must for high-end markets. This makes the competition center of panel manufacturers shift from capacity investment to cutting-edge technology investment. According to the author's understanding, BOE Chongqing and Hefei 8.5 generation lines all belong to the new semiconductor display device production line. The BOE Chongqing 8.5 generation production line adopts Oxide TFT technology and uses the metal oxide IGZO (Indium Gallium Oxide) to replace the advanced semiconductor materials. Technology is one of the most important production technologies for high-end displays in the future; Hefei 8.5-generation line also belongs to the oxide TFT-LCD production line, which mainly produces ultra-high resolution high-end liquid crystal displays. In addition to BOE, the China Star Optoelectronics TFT-LCD Phase II project also uses oxide semiconductors and AMOLED technology, while the new generation of the 8.5-generation line of the Chinese panda panda rely on Sharp's most advanced IGZO technology to develop new technologies. It can be seen that local panel makers have begun to fully exert high-end market forces. According to the data provided by Quzhi Consultation, with the maturity of OxideTFT technology and the commencement of production of multiple 8.5-generation lines, it is expected that the Oxide production area will account for 2.0% of the total area in 2015.

Bigger and stronger flat-panel display industry has become the largest mission of Chinese mainland panel makers. In recent years, the Chinese mainland panel companies, which resisted the pressure of public opinion on “overcapacity,” invested in the construction of multiple LCD panel production lines, and in 2013 ushered in the turning point of profit. According to QunZhi Consulting, the panel self-sufficiency rate in mainland China will reach 40.2% in 2014. In 2015, the self-sufficiency ratio of TV panels in Mainland China will reach 58.5%. The next step for mainland Chinese panel makers is to strengthen the LCD industry and increase their overall competitiveness. In particular, new technologies such as low-temperature polysilicon, metal oxides, and OLEDs should be grasped. This will be the most powerful support for the LCD panel industry in mainland China to become bigger and stronger.

However, in my opinion, although the flat panel display industry in Mainland China has achieved great results, it cannot be blindly optimistic. The future development still faces both opportunities and challenges. By 2020, the global display will still maintain a compound annual growth rate of 5.9%, of which high-performance display devices are in short supply and will maintain double-digit growth. Mainland China panel makers have already established a high generation line, must break through the bottleneck of mass production as soon as possible, achieve industrialization of high-performance display devices, and will form a supporting scale to truly taste the sweetness of profit. At the same time, it should be noted that although OLEDs cannot replace LCDs in large-size areas, China must lay out large-scale OLED technologies in advance and grasp the pulse of industrial development to gain the right to speak.

China's flat panel display industry development outlook in 2014

In 2013, the flat panel display industry in China continued to grow rapidly. Several high-generation line production has enhanced the international competitiveness of China's flat panel display industry. The scale of the industry continues to expand, the global market share continues to increase, the panel self-sufficiency rate has gradually increased, the regional development has its own characteristics, and the industrial development has entered a virtuous circle. Looking forward to 2014, China’s flat-panel display industry will face both opportunities and challenges. It will also see further growth in the level of existing technologies, steady progress in the mass production process, continuous enhancement of local supporting capabilities, and general improvement in the operating conditions of panel companies, as well as the continued decline in panel prices. Operating pressures and changes in demand for end products have led to major adjustments in the pattern of panel industries, and foreign companies have used intellectual property weapons to suppress unfavorable factors such as pressure on Chinese companies.

I. Basic judgments on the situation in 2014 (I) The industrial scale has grown rapidly, and self-sufficiency has increased significantly

In 2014, the global display industry will continue to show a steady development trend, and it is expected to maintain a growth rate of approximately 6%. Benefit from the expansion of domestic panel production capacity and the rapid development of downstream intelligent terminals, China's flat panel display industry will continue to maintain rapid growth. In China, 5 high-generation TFT-LCDs (6th generation and above) have been completed, and 7 of them are built. It is expected that there will be two new 8.5-generation lines in China in 2014. This will allow China's panel market share in the next two years is expected to rise to 20%, significantly enhance the international competitiveness.

Affected by tariff adjustments in 2012, the trade deficit dropped sharply. The trade deficit for the first three quarters of 2013 was US$10.38 billion, an increase of 11% year-on-year. The export display panel industry structure was further optimized, and the proportion of large-size panel exports increased. The effect of policy adjustment in 2014 will gradually stabilize, and the trade deficit is expected to further shrink. At the same time, with the mass production of newly built high-generation lines, the domestic panel supply capacity will again increase substantially, and the panel self-sufficiency rate is expected to exceed 45%.

(II) Speeding up the industrial transfer and enhancing the regional development

China is the world's largest producer and consumer of display terminals. It ranks among the top in the world in the output of various types of electronic terminal products. It is estimated that in 2014, China's color TV output will exceed 130 million units, and other electronic terminal products will also continue to grow, with huge demand in the panel market. From the perspective of global supply and demand, affected by the economic crisis, international leading enterprises have slowed their investment in production capacity, and our country has stepped up investment and construction. If we can take advantage of the 1 to 2 year preparation period for production capacity from investment to release, our flat panel display The industry will usher in a good period of development, and further accelerate the process of global flat panel display industry transfer to China.

In 2014, the concentration of flat panel display industry in China will further increase. The four major industrial clusters including Beijing-Tianjin-Tanggu, Yangtze River Delta, Pearl River Delta, and Chengdu-Chongqing-Huzhou will all have high-generation lines. In order to meet the needs of regional terminals, all industrial bases have made choices in the layout of the panel production line and upstream and downstream of the industrial chain, and have developed their own characteristics. BOE Ordos 5.5-generation AMOLED panel production line and Hefei 8.5 generation panel production line adopting metal oxide backplane technology will enter volume production stage in 2014. By then, the Bohai Rim and Yangtze River Delta region will reserve and mass produce a new generation of display technology. A major breakthrough in progress has been made. In the next two years, the Pearl River Delta region will have two 8.5-generation generation lines completed and put into operation to further satisfy the panel demand of TV production bases in Guangdong and Fujian, and stabilize supply. Sichuan, Chongqing and Hubei, represented by Chongqing, Chengdu and Wuhan, will focus on the deployment of small and medium-sized panels and touch screens, and will further improve the industry chain of mobile intelligent terminal products in the region.

(III) The level of technology has been further improved and the mass production process has been steadily progressing

With the global flat panel display industry's overall growth slowing down, the industrialization of new technologies and the mass production of new products have become an important driving force for industrial development. In the area of ​​TFT-LCD technology, the productivity of high-end LCD panels built on its own initiative has made breakthrough progress. The backbone enterprises have turned their attention to the development of backplane evolution technologies such as low-temperature polysilicon (LTPS) and oxide (Oxide), at high resolution and wide New technologies such as perspectives, low power consumption and narrow bezels have increased investment, and a number of new products with independent intellectual property rights have been developed. AMOLED technology has also made certain progress. A variety of distinctive LCD and AMOLED samples have been introduced in succession, 110-inch 4K×2K, 98-inch 8K×4K, 65-inch oxide backplane large-size LCD TV panels, more than 30-inch AMOLED display, and 6-inch high PPIL TPS TFT mobile phone Display and other products are in the international advanced ranks.

In 2014, the mass production process of new flat panel display technology in China will be significantly accelerated. A low-temperature polysilicon and oxide TFT-LCD production line was put into mass production respectively, and several AMOLED production lines were completed and put into production. The integration of touch display and related industries was progressing smoothly. China's high-end panel production capacity will make significant progress.

(IV) Local supporting capabilities have been continuously enhanced, and the operating conditions of panel companies have generally improved. The production of multiple high-generation lines has led to the development of upstream materials and equipment, and promoted the preparation of supporting materials for glass substrates, liquid crystal materials, backlight components, and driver ICs. The localization process has enabled our flat panel display industry to make breakthroughs. Under the support and guidance of national policies, the supporting capabilities for localization have been continuously improved, and the supporting rate for the localization of key enterprises has exceeded 30%. In 2014, the localized material matching rate is expected to exceed 40%, the equipment localization rate is expected to increase to 16%, and the total purchase amount exceeds 15 billion yuan.

With the new production capacity reaching full capacity one after another, domestic flat panel display companies' profitability has generally improved and they have successfully turned losses into profits. In the first three quarters of 2013, BOE earned more than 1.3 billion yuan in profits, and its annual profit is expected to reach 2 billion yuan, which will increase by about 6 times from 2012. The operating conditions of Tianma and Huaxing Optoelectronics have generally improved. In 2014, the profitability of China's panel companies was expected to be maintained on the basis of more reasonable layout of production lines.

Second, several issues that need attention

(I) The expansion of production capacity has brought panel prices to continue to fall. Companies are facing operational pressures. The LCD panel industry is characterized by cyclical fluctuations, and prices will fluctuate significantly with the boom cycle. This is mainly affected by three aspects. First, the newly-opened capacity brought about an increase in the supply of panels, which led to a drop in prices. Changes in market supply have led terminal manufacturers to adjust their inventory, and panel prices have changed. At the same time, advanced companies have taken the initiative to cut prices in order to maintain market share. Second, the declining demand in the terminal market put pressure on the panel prices. Considering the slow recovery of the global economic environment, it is expected that the growth of the LCD TV market will remain more conservative in the coming years. Third, new technology upgrades affect panel prices and capacity. Panel companies will ensure profitability by introducing new dimensions and actively introducing new technologies to increase product added value, and new processes will have a greater impact on production capacity. Therefore, as the global LCD panel market matures, the long-term downward trend in panel prices is basically confirmed. In 2014, panel demand will show a situation where supply exceeds demand, and panel prices will decline further. Panel companies in South Korea, Japan, and China's Taiwan region will continue to reduce panel prices by taking advantage of depreciation of production lines and complete industrial chain to ensure market share and corporate cash flow. At the same time, they will also introduce new high-value-added displays through process adjustments. Products, guaranteed to obtain high profit margins. Due to the short completion time of China's high-generation panel line, the depreciation pressure of the production line is huge, and the trend of the panel price will have an important impact on the operation of the company.

(2) Intellectual property rights have become a constraint on China's panel companies to catch up with the world. In recent years, the independent innovation capability of the flat panel display industry in China has been continuously improved, and the number of domestic patent applications has rapidly increased. According to statistics from the State Intellectual Property Office, China has more than 10,000 cumulative patents in the field of flat panel display. It is expected that the number of new patent applications in 2013 will exceed 3,000. However, due to the late entry into the flat panel display industry in China, there is still a large gap between the patent and the world advanced level. According to statistics of the “Liquid Crystal Display Industry Patent Analysis Report” released by the State Intellectual Property Office in 2013, LCDs show that among the top 10 global patent applications, there are 2 South Korean companies and 7 Japanese companies, and 1 in China’s Taiwan region. There is no mainland China’s enterprise. It can be seen that the patent layout of China's flat panel display industry is still in its infancy. Compared with the rapidly growing industrial scale, the construction of an intellectual property offense and defense system is imminent. In 2014, how to improve the patent conversion rate of the flat panel display industry in China, flexibly use the rules and techniques of the game in the offensive and defensive battle of intellectual property rights, attach importance to independent research and development, and accumulate the core patent achievements will become new tasks for the intellectual property construction of the flat panel display industry in China.

(III) Changes in the demand of terminal products will lead to a greater adjustment in the product structure of the panel The change in the structure of the terminal product not only affects the demand for large-size and small- and medium-sized panels, but also accelerates the industrialization of panel new technologies and the pace of mass production of new products. The slowdown in global economic growth has led to a decline in television demand in developed regions, and the lack of growth in emerging markets. The expiration of domestic “energy-saving and benefit-for-money” policies has also affected the continued growth of China’s TV market. As a result, the large-size panel market has been significantly affected. On the other hand, the rise of smart mobile devices represented by tablet PCs and smart phones has opened up new markets for the flat-panel display industry. In 2014, shipments of large-sized panels for TVs, monitors, and notebook PCs will show declining growth. Situation, 4K×2K, ultra-narrow frame, high aperture ratio, high resolution and other new technologies will become the main driving force for growth; the small and medium size panel market dominated by smart phones and tablet PCs will continue to maintain a rapid growth momentum in the Samsung Galaxy series. With the drive of Apple products, the application of emerging display technologies such as AMOLED, LTPS, and oxides will further accelerate, and panel shipments using new technologies will show a two-digit increase, among which AMOLED display revenue is expected to exceed the proportion of small and medium size in revenue. 45%. Although China's flat panel display industry has a certain reserve in terms of new technologies, the process of industrialization is still lagging behind. Rapid changes in the structure of panel products will directly affect the pace at which the flat panel display industry in China will catch up with the world.

(IV) The rapid increase of industry scale places higher demands on local supporting capabilities The new flat panel display industry is characterized by high added value and high importance of upstream equipment, spare parts and materials. The lag in the development of key materials and equipment will bring severe challenges to the industry. Compared with the panel companies, the domestic material manufacturers started later and the technical foundation was weak. More than 70% of key materials and spare parts still depend on imports. The core process equipment is monopolized by a few foreign manufacturers, in the substrate glass, liquid crystal materials, polarizers, The constraints on supporting key materials such as optical films are still relatively large. On the other hand, China's upstream supporting enterprises are basically small and medium-sized enterprises, lack of technical and capital precipitation, limited investment in technology research and development, and obvious disadvantages in competition with powerful international companies. In 2014, with the further increase of the global market share of the flat panel display industry in China, the lack of materials and equipment supporting capabilities will be more prominent in the constraints of industrial development. How to solve the core technology is subject to people, the company is too small, the lack of accumulation and the development environment is not very reasonable and other issues, is the decision of China's flat panel display industry, the next step is the key to sustainable and healthy development.

Third, the countermeasures and suggestions that should be taken (I) Increase policy support and enhance core competitiveness

The first is to strengthen planning guidance and policy support, increase investment in scientific research and support for the flat panel display industry, and form a good momentum for the overall demand for the traction, panel industry as a leader, and the coordinated development of the industrial chain. The second is to increase support for key enterprises to accelerate the development of the development of leading enterprises, implement relevant policies to promote industrial development, flexibly use tariff instruments, and promote the development of local enterprises. The third is to effectively use financial funds to support the implementation of preferential policies to support the development of new display industries. Relying on major state-related major projects, the government will promote industrial development through central government support and local follow-up investment demonstration.

(B) Support innovative development and promote key technological progress

The first is to make overall use of financial funds to support the research and development of new TFT-LCD production lines and technological upgrades, and to increase support from R&D promotion and supporting cooperation. The second is to increase support and attach importance to the development of a new generation of display technology and industrialization. We will pay close attention to trends in technology and industry development, scientifically grasp the trend and rhythm of technology, and actively deploy new display technologies such as AMOLED, backplane technology (LTPS, Oxide) for R&D and application, and vigorously support the development of basic industrial enterprises. Third, pay attention to the construction of independent intellectual property rights, strengthen the awareness of intellectual property risk in China's enterprises, strengthen the quality and quantity of patent output, include the intellectual property, standards and other indicators into the scope of national monitoring, guide enterprises to conduct knowledge achievement management, and improve the ability to respond to intellectual property barriers. To promote the healthy development of the industry.

(III) Guiding Industrial Clusters and Emphasizing Cultivating Backbone Enterprises

First, on the basis of consolidating the previous work, we will strengthen the regional layout and industrial cluster cultivation, promote vertical integration and horizontal cooperation, and guide the industry in an orderly way to the development of industrial cluster areas that have initially formed scale. The second is to support the panel as the center, build a “material-panel-module-to-machine” vertical industrial chain, and form an industrial cluster base supported by large-scale backbone enterprises, complete industrial chain support, and perfect industrial service system. The third is to make excellent panel companies, accelerate the development of a group of panel manufacturing companies with core technologies, perfect innovation systems, rich product structure, high brand awareness, and strong global competitiveness. The fourth is to promote the leading enterprises of the panel to strengthen horizontal cooperation, jointly develop key common technologies, and achieve mutual trust and mutual recognition with upstream material companies.

(IV) Optimizing supporting systems to enhance independent development

The first is to give full play to the economies of scale of the panel manufacturing core companies, establish a production supporting system, form a strategic supply relationship with the downstream companies, or an industrial group to form a mutually dependent and mutually reinforcing cooperative relationship. The second is to explore the possibility of vertical integration of the new flat panel display industry, combine the resources of enterprises and local governments, encourage advantageous enterprises to merge with small and medium-sized enterprises, enhance the core competitiveness of enterprises, and promote the formation of China's own industry giant. The third is to develop high-end product supply chains, set up industrial chain alliances, break the international monopoly of foreign supply chains, accelerate basic research and industrialization of accessory products such as glass substrates, polarizers, and driver ICs, and increase local supply rates.

(V) Deepen opening to the outside world and strengthen international exchanges and cooperation

First, continue to support foreign investment in China to build factories. We will vigorously attract foreign capital, technology, and talents to transfer to the mainland and continue to increase the use of foreign capital. The second is to guide and encourage qualified mainland enterprises to participate in investment cooperation in various forms overseas. Fully participate in international competition and international division of labor, make full use of its own technology, market and other resources to carry out international business cooperation, and enhance core competitiveness in market competition. The third is to promote technological exchanges and cooperation at multiple levels, through multiple channels and in multiple ways, give full play to the role of bridges and bonds of industry associations, strengthen communication, and promote the research, development and application of new technologies and new products.