China’s top three LCD panel makers BOE Technology, China Star Optoelectronics Technology (CSOT) and Chongqing HKC will account for over 50% of global LCD TV panel production capacity in 2021, with the proportion set to climb to nearly 70% in 2023, according to market sources.
BOE and CSOT, an affiliate of TCL, have been aggressive in ramping up capacities at their 10.5G lines, while HKC has been focusing on expanding output from its 8.6G fabs, said the sources.
Due to capacity ramps from these fabs, Sigmaintell Consulting has forecast that the global output of LCD TV panels is likely to grow 8.6% on year in 2021 and another 12.1% in 2022, in terms of area output.
The increased output has not affected the profitability of related panel makers, as the robust demand from the end-market device suppliers, increases in panel sizes, and technology upgrades have significantly shored up panel prices, commented the sources.
Some market observers believe that most panel makers will maintain their profitability at higher levels in 2022 as the concentration of production capacity might help ease the competition within the industry.
The observers also noted that the ranges of increases in panel prices will narrow down in the third quarter of 2021 thanks to a balance in the demand and supply of panels.
However, the sources continued that panel prices are likely to move downward in the fourth quarter and probably in 2022 due to reduced demand from brand vendors and increased output from panel makers.
Reference: DigiTimesAsia
