Huaxing Optoelectronics 8.5 generation LCD panel project was formally put into production and AUO Kunshan's 8.5th generation LCD panel production line project was approved. The two messages yesterday sparked waves in the LCD panel industry, together with the already-produced BOE 8.5 generation line, which has been grounded Samsung 7.5-generation line and the upcoming Guangzhou LGD 8.5-generation line, the mainland will be intensive debut five high-generation LCD panel line, the pattern of long competition emerged.
Concern over the “overcapacity†worries followed, coupled with the unsightly performance reports of panel companies in Japan and Korea, Taiwan, and lingering "price manipulation" lawsuits, the prospects of the LCD panel industry are full of more uncertainty.
High-generation line strikes
Yesterday, the first phase of the 8.5-generation LCD panel project of Huaxing Optoelectronics, led by the TCL Group, was formally put into operation. Huaxing Optoelectronics CEO He Chengming stated that Huaxing Optoelectronics started piling construction on March 15, 2010, and all work is progressing smoothly. According to reports, Huaxing Optoelectronics is expected to start mass production at the end of the fourth quarter of this year and plans to complete production of the project by the end of next year.
The reporter confirmed yesterday from AU Optronics that the 8.5th generation TFT-LCD panel production line project of AU Optronics (Kunshan) Co., Ltd., which holds 49% of the company's shares, has been approved by the National Development and Reform Commission.
Overcapacity risks
Since May 2010, LCD panel prices have continued to decline in 11 months. The price of the 32-inch panel has dropped from $210 last April to $140. Since the third quarter of last year, panel companies have suffered losses. "Samsung and LG began to lose money in the fourth quarter of last year." Peng Shuanglang, executive vice president of AUO's global business, told the media, "AUDA has also suffered losses for two consecutive quarters."
As the panel maker's second-quarter earnings continued to fall below market expectations, this trend is likely to continue into the first half of 2012.
More importantly, once the five high-level lines that have been identified in the Chinese mainland have been put into production collectively, the hidden dangers of overcapacity in the industry will fully emerge. "There are too many subjects and industries are not an important issue facing the LCD panel industry in China." An executive of a color TV company admitted yesterday that when China's high-generation LCD panel industry will enter the stage of major integration.
Some companies seem to have recognized these issues. Huaxing Optoelectronics and Samsung’s Suzhou project announced cross-shareholdings in April, trying to achieve the advantage of the group army through “bundlingâ€.
Concern over the “overcapacity†worries followed, coupled with the unsightly performance reports of panel companies in Japan and Korea, Taiwan, and lingering "price manipulation" lawsuits, the prospects of the LCD panel industry are full of more uncertainty.
High-generation line strikes
Yesterday, the first phase of the 8.5-generation LCD panel project of Huaxing Optoelectronics, led by the TCL Group, was formally put into operation. Huaxing Optoelectronics CEO He Chengming stated that Huaxing Optoelectronics started piling construction on March 15, 2010, and all work is progressing smoothly. According to reports, Huaxing Optoelectronics is expected to start mass production at the end of the fourth quarter of this year and plans to complete production of the project by the end of next year.
The reporter confirmed yesterday from AU Optronics that the 8.5th generation TFT-LCD panel production line project of AU Optronics (Kunshan) Co., Ltd., which holds 49% of the company's shares, has been approved by the National Development and Reform Commission.
Overcapacity risks
Since May 2010, LCD panel prices have continued to decline in 11 months. The price of the 32-inch panel has dropped from $210 last April to $140. Since the third quarter of last year, panel companies have suffered losses. "Samsung and LG began to lose money in the fourth quarter of last year." Peng Shuanglang, executive vice president of AUO's global business, told the media, "AUDA has also suffered losses for two consecutive quarters."
As the panel maker's second-quarter earnings continued to fall below market expectations, this trend is likely to continue into the first half of 2012.
More importantly, once the five high-level lines that have been identified in the Chinese mainland have been put into production collectively, the hidden dangers of overcapacity in the industry will fully emerge. "There are too many subjects and industries are not an important issue facing the LCD panel industry in China." An executive of a color TV company admitted yesterday that when China's high-generation LCD panel industry will enter the stage of major integration.
Some companies seem to have recognized these issues. Huaxing Optoelectronics and Samsung’s Suzhou project announced cross-shareholdings in April, trying to achieve the advantage of the group army through “bundlingâ€.
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