China TFT LCD Panel Market To Have Booming Sales

TFT LCD panel market in China is anticipated to be significantly oversupplied. Chinese manufacturer are constantly adding new capacities irrespective of the low TV demand.

The industry is likely to witness six percent increase in supply as compared with last year’s performance accounting for two percent. Particularly, the estimation for 2018 to 2020 reflects a rise in oversupply as stated in the report.

The report highlights Taiwan’s AU Optronics Corp and Innolux Corp to be exceptions. There have been instances of business diversification and rise in oversupply. AUO’s profitability is largely affected by industry’s supply related dynamics.

The company is making huge efforts to upgrade the product base and technology as the market is highly developing, thanks to AUO’s product line comprising thin-bezel and ultra-large products.

The report also highlighted that AUO is a huge name in China as it has a huge customer base, opportunities for expansion and operational flexibility along with sound financial performance.

Despite of the fall in prices for TFT LCD panels, Morgan Stanley raised its earnings and forecasts to grow by 10 percent by 2020. Innolux is much vulnerable to TFT-LCD panel since there is lack of product diversification for advantage.

The report also demonstrated the difference between the rises of shared in AUO and Innolux in Taipei. There has been a rise in active-matrix organic light emitting diode (AMOLED) panels used in high-end smartphones. This is the only positive factor to assist industrial growth in 2019. From 2020, the industry is anticipated to witness marginal growth of 30 percent as the sales for AMOLED will gain an upward traction.― Business News Column

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