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New milestone shows Chinese TV panel makers becoming a threat: report

New milestone shows Chinese TV panel makers becoming a threat: report

Taipei, Aug. 26 (CNA) China's TV panel makers will gain more confidence in their ability to compete against leading players from Taiwan and South Korea after hitting a new production milestone, according to a recent NPD DisplaySearch report. The report said BOE Technology Group Co., China's biggest liquid-crystal display (LCD) panel maker, shipped 1.1 million LCD TV panels in July this year, the first time a Chinese panel maker shipped more than 1 million panels in a single month. The report also said that China Star Optoelectronics Technology Co., China's No. 2 flat-screen panel maker, is planning to ship 1.1 million to 1.2 million LCD TV panels in August, a big leap from the 700,000 it shipped in July. "The rise of Chinese TV panel makers, located in the biggest LCD TV market in the world, poses a threat to the existing business of Korean and Taiwanese panel makers," said David Hsieh, vice president of DisplaySearch for the Greater China market. "There is much discussion about the maturity of the LCD and TV industries, but the rise of China could lead to a rejuvenation, and more importantly, a reshaping of the business model," he said. Also, there is always a possibility that the Chinese government may increase its import duty on LCD TV panels from 5 percent announced in March this year to 8 or 10 percent to support domestic panel makers, Hsieh said. He suggested that Chinese panel makers will likely gain confidence in their businesses and fab investments after hitting the milestone but noted that their capacity is still small compared with South Korean and Taiwanese panel makers. Samsung Electronics Co. and LG Display Co. of South Korea, and Chimei Innolux Corp. of Taiwan are all shipping over 4 million LCD TV panels per month, while Taiwan's AU Optronics Corp. ships about 3 million units per month, according to DisplaySearch. Still, hitting the milestone is considered significant because it shows that the Chinese makers are gradually building their technological and production execution capabilities and developing customer bases to which to sell their panels, the research firm said. Until recently, Chinese TV brands have relied heavily on South Korean and Taiwanese panel makers to supply sufficient quantities of panels. China's domestic panel makers had only a 17 percent share of the panels bought by Chinese TV brands in the first quarter of 2012, compared with 47 percent for Taiwanese panel makers and 32 percent for South Korean makers, DisplaySearch said. "Of course, Chinese TV panel makers still need to expand their product portfolio because currently they are mainly shipping entry-level 32-inch panels and have not been able to expand into larger sizes like 42, 46 or 55 inches," Hsieh said. "But no matter how many investments are made by Chinese companies, shipment results are the most obvious and direct proof that they can survive in the LCD battlefield." (By Jeffrey Wu)


Updated : 2021-06-12 22:35 GMT+08:00