LCD panels, as a major component of displays, are widely used in mobile phones, computers, TVs, and many other fields, and are currently the mainstream application type. The following is a detailed overview of the LCD optical panel industry:
I. Introduction to LCD Panels
Definition and Application: An LCD panel, or liquid crystal display panel, is the main component of a liquid crystal display. It is widely used in televisions, monitors, mobile phones, laptops, and automotive displays.
Industry Chain Structure:
Upstream Materials: Includes key raw materials such as liquid crystal materials, glass substrates, polarizers, filters, and optical films.
Midstream Manufacturing: Covers three core manufacturing processes: front-end array, mid-end cell assembly, and back-end module assembly (LCM).
Downstream Applications: Involves terminal products such as televisions, monitors, mobile phones, and laptops. Television panels account for the highest proportion of shipments, reaching 67%, while mobile phone and PC panels account for 7% and 5% respectively.
II. Cyclicality of the Panel Industry
Price Trend: Due to technological advancements, declining raw material costs, and economies of scale, panel prices generally show a fluctuating downward trend.
Cyclical Performance: The panel industry exhibits a clear cyclical pattern. Pioneer companies develop new products, creating new demand. This leads to supply shortages, prompting new capacity expansion, until oversupply causes prices to fall. After prices drop, demand expands again, leading to capacity shortages and triggering another round of capacity expansion, thus creating a cyclical pattern.
III. Supply-Side Situation
Industry Concentration: In recent years, South Korean manufacturers have gradually withdrawn, and Taiwanese manufacturers have declined, resulting in a continued shift in industry concentration towards domestic manufacturers. As of November 2022, domestic TV panel shipments accounted for 65.7%, while the share of Japanese and South Korean manufacturers fell to 16%.
Market Share: BOE, TCL (China Star Optoelectronics Technology), LG, HKC, and Innolux rank among the top five globally in large-size LCD panel market share, with 26.8%, 17.6%, 11.8%, 11.7%, and 10.1% respectively.
Capacity and Production Lines: Currently, domestic panel manufacturers have no plans to build new large-size LCD production lines, resulting in a relatively stable supply situation.
IV. Demand-Side Situation
Consumer Demand: Affected by past special circumstances and high inflation, global consumer demand is weak, with shipments of mobile phones, PCs, and TVs continuing to decline.
Inventory Cycle: The long-term price cycle of panels is determined by the supply and demand pattern, while the inventory cycle affects short-term prices. Currently, the panel industry is in a destocking phase, impacting short-term prices.
In summary, after experiencing a series of changes, the LCD optical panel industry currently shows a relatively stable supply side, while demand is affected by weak global consumer demand. In the future, with continuous technological advancements and market changes, the LCD optical panel industry will continue to face new challenges and opportunities.
