Computer LCD Panel Prices Continued to Rise

On March 22, the price of PC liquid crystal display (LCD) continued to rise.

Taking the transaction price of laptop panel as an example, the preferential price of large order of 15.6-inch HD resolution LCD panel as an indicator rose to about $35.5/piece in February, up about 4% month on month. Nikkei pointed out that the supply shortage of panel "drive IC" has intensified. Omdia analysts said that the production equipment of semiconductor factories is used for automotive semiconductors with high profit margins.

According to a previous report in China's Taiwan Economic Daily, a person in the IC design industry disclosed that the foundry capacity of wafers is very tight, belonging to the "seller's market". The OEM price of driver IC has always been low compared with other chips. Recently, due to the rising demand for panels and mobile phones, relevant manufacturers are bound to raise the price in order to strive for more production capacity.

From a domestic perspective, China's two major LCD panel manufacturers have suffered setbacks in the process of becoming the world's top two LCD panel manufacturers. Due to the sharp rise of China's LCD panel production capacity, the global LCD panel market once had overcapacity, resulting in the decline of LCD panel prices, which put the two LCD panel enterprises under heavy pressure.

In 2020, COVID-19's impact unexpectedly brought good results to China's two largest LCD panel manufacturers. Due to the implementation of home quarantine measures, the demand for TV in the global market increased sharply. Affected by the epidemic, consumers' income fell and turned to affordable LCD TVs, which eventually led to a sharp increase in the demand for LCD panels in the global market, and the price of LCD panels continued to rise.

So China's two major LCD panel manufacturers ushered in a golden age. According to the performance forecast released by BOE, its net profit is expected to increase by 150% - 166% year-on-year to RMB 4.8 billion-5.1 billion in 2020; According to the results released by TCL, the net profit in 2020 increased by 151.1% year-on-year. It can be said that China's two major LCD panel enterprises have become the biggest winners in the panel industry.

This article is a comprehensive report by electronic enthusiasts. The content refers to Nikkei Chinese network and it home. Please indicate the above source for reprint.

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