Mainland China will have 10 OLED production lines and produce 330,000 units per month

According to the latest report from IHS Markit, in the second quarter of 2019, China will surpass South Korea and become the world's largest LCD production capacity; and before the fourth quarter of 2018, China has already surpassed South Korea to become the largest in 8 generations. Line capacity area. From 2012 BOE's first 8th-generation line to mass production, in just 5 years, mainland China has passed through the roads of other regional panel makers for 15 to 20 years, and has quickly and steadily grown into the region with the largest capacity in the world. .

At present, China's mainland panel companies have six 8th-generation lines to reach full capacity for design production. Two 8th-generation lines are in the process of ramping up production capacity. It is expected that the maximum design capacity will be reached before the second quarter of 2018. By 2020, mainland China will have 10 lines of the 8th generation (including 8.5, 8.6 and 8.7 generations), and the total production capacity will reach 1.23 million monthly films, which is far more than the 960,000 films that Samsung and Lejin display during the month. The total capacity scale. Moreover, this does not take into account the three 10.5 generation lines (BOE Hefei B9, and China Star Optronics Shenzhen T6 and T7) that have been or will soon reach full capacity, and the new 10.5 generation line projects under construction at Sharp, Wikko, and BOE. Capacity.

Table1 2017~2022 Chinese panel makers' capacity expansion plan

From the table can also be seen, China will have 10 5.5/6 generation OLED production lines, total monthly film production capacity of 330,000 tablets. At that time, it will also become the region with the largest OLED production capacity except Korea.

According to IHS Markit's latest industry tracking and forecast, by 2019, the mainland panel company, BOE, will surpass South Korea's Lucky Display to become the world's largest company with the largest LCD panel production capacity by area. From 2021 onwards, China Star Optoelectronics will also surpass Innolux to become a panel plant with the fourth largest capacity in the world.

Figure1 2000~2022 capacity rankings by panel maker

The rapid expansion of production capacity coupled with the panel price increase since mid-2016 has enabled mainland panel companies to achieve very good performance in the past year; however, the decline in demand since the second quarter of this year Under the general trend, many companies have begun to worry about whether all the profits of the whole year will fall into the second half or even the last quarter. To know that the 32-inch LCD TV panel has only 50 US dollars, it just happened four quarters ago.

According to another forecast made by IHS Markit, by 2020, if the total shipment volume of 264 million pieces in 2016 is to be consumed, all new production capacity in 2017 and after that will have reached full capacity will be consumed. LCD TVs The average size of the panel must grow to about 50 inches. Correspondingly, in the second quarter of 2017, the average size of LCD TV panels shipped was only 42.5 inches. This also means that if the total shipment does not shrink, if the average size of the annual growth is less than 2.5 inches in the next three years, it will inevitably lead to an oversupply situation by 2020.


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