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Investment in panel equipment is high in mainland China or t
Shenzhen Xinlicheng Technology Co.,Ltd. / 2016-10-14

As mainland panel factories continue to invest in new Flat-Panel Display (FPD) factories, making the mainland the world's largest FPD production area, investment in new FPD factories has been on the rise over the past years, thus driving the sales of investment equipment for FPD to a record high in three years.

 

 

 

IHS Markit points out that expenditure on FPD equipment is expected to grow by 89% in 2016 to $12.9 billion, to $13 billion in 2017, and then slightly to $11.8 billion in 2018 as capital expenditure on new plants slows down.

 

 

 

Charles Annis, senior director of IHS Markit, said that by the second quarter of 2017, the mainland would surpass South Korea, which has long dominated the market in panel capacity.

 

 

 

According to IHS Markit, due to the construction of the 6th and 8th generation factories in mainland China, the largest panel factories, Beijing Dongfang and Huaxing Optoelectronics, have actively invested in 10.5 and 11 generation panel factories to produce 65 and 75 inch TV panels.

 

 

 

At present, FPD manufacturers in Korea and Japan have begun to transfer the LCD market to lower-cost producers in mainland China, and have begun to close LCD factories requiring vast land. While they still have technological advantages in AMOLED (active matrix organic light emitting diode), their attention has shifted to the generation of AMOLED panels. It is produced.

 

 

 

_As production capacity in other regions decreases, the supply and demand of panels have also reached a balance, which makes the mainland panels industry more confident to build more factories.

 

 

 

IHS pointed out that between 2016 and 2016, the mainland will take 65% of all FPD equipment expenditure.

 

 

 

_As FPD mobile phone applications are undergoing the first major technological change, smartphone manufacturers are rapidly replacing LCD panels with AMOLED.

 

 

 

Among them, Samsung is leading this latest technology, successfully using its own AMOLED display screen to Galaxy products, and expanding the sales of AMOLED panels to other smartphone manufacturers seeking high-level display screens.

 

 

 

In order to catch up with market changes, Korean and Japanese panel factories are also eager to build AMOLED new factories. As for mainland manufacturers, with the assistance of regional government joint ventures, many AMOLED factories will be built one after another, and AMOLED will be regarded as a good opportunity to upgrade themselves from the latter manufacturers to the leading manufacturers.

 

 

 

Annis said that many new FPD factories have been built by various manufacturers, and most of them are at the highest level. Therefore, 10.5-11 generation line factories have great potential. Because of the larger scale of equipment and facilities, the construction cost of 10.5-11 generation line factories is more than twice that of 8 generation factories.

 

 

 

Almost all of AMOLED's new factories have plans to produce soft plastic screens. Most of these new factories adopt LTPS-TFT backplane technology with high complexity and multi-wheel hood, which requires more high-resolution exposure lines and other supporting equipment.

 

 

 

Annis said that the new soft AMOLED production line now under construction is worth 50% more than the rigid AMOLED plant just built a few years ago. Therefore, FPD equipment manufacturers are rushing to increase production capacity to meet customer needs and fully embrace the current business opportunities.

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