Worldwide production capacity for large-size (9-inch and above) TFT LCD panels is projected to rise over 9 percent annually through 2020 resulting from continued capacity expansions by China-based flat panel makers.
It is estimated that a total of six 10.5/11G lines will come into operations in China before 2021, including two each from BOE Technology and China Star Optoelectronics Technology (CSOT), one from Foxconn Electronics and one from Chongqing HKC.
In particular, HKC and China Electronics Corporation (CEC) are expected to follow the steps of BOE and CSOT to aggressively expand their capacities in the next few years, with their large-size LCD panel production capacity to grow over 55 percent each in 2019,
The business prospects of other flat panel makers outside China would be affected by the relentless expansion efforts of China-based players, and therefore Korea-based flat panel makers are likely to begin to trim down their production lines for LCD panels in 2019. It is forecast that the capacity of LG Display’s 8.5G lines would be reduced by 120,000 substrates a month by 2022 as compared to the capacity seen in 2018.
However, the growth of the global capacity for large-size panels is expected to dip below 2% on year in 2022-2023, as the large-scale capacity ramps implemented in 2018-2020 are likely to result in oversupply and reduced earnings for makers consequently, and therefore forcing panel makers to become more conservative about new investments.— DIGITIMES