At present, the global LCD LCD screen industry has formed a tripartite situation in China, Taiwan, South Korea and Japan. The LCD display industry in mainland China is growing rapidly, and it is even expected to surpass Japan, South Korea, and Taiwan in 2019 to become the number one LCD panel producer. However, at the same time of rapid development, there are also many problems in the LCD display industry in mainland China, which deserve our vigilance.
What are the main problems in the LCD display industry in Mainland China?
1. The added value of the product is low, and the upstream material relies heavily on imports
China's LCD liquid crystal display industry is developing rapidly under the background of the Internet of Things era of "display everywhere". The production capacity of LCD liquid crystal panels has soared, and the production line has been increasing year after year. However, our investment is basically in the midstream manufacturing link of the LCD screen industry, resulting in low added value of the product. In addition, a large number of production materials need to be imported, and the supporting equipment of the production line is also dependent on imports. The upstream materials of LCD panels are mainly liquid crystal materials, glass substrates, polarizers and backlights. Therefore, the lack of core upstream materials makes our LCD screen industry structure unstable. The lack of upstream materials for LCD screens is mainly due to the late start of the LCD panel industry in mainland China. The market has ready-made technologies needed for upstream materials. Most companies tend to directly use other people's ready-made materials and equipment instead of investing a lot of research and development funds to develop. The technology to produce these upstream materials and produce assembly equipment. Under such circumstances, the instability of the industrial structure of the mainland LCD liquid crystal industry may become more and more obvious.
2. Lack of excellent technical talents
In recent years, it is not uncommon for mainland China to dig LCD technology talents from Taiwanese and Korean companies. According to unofficial statistics, from 2009 to the present, about 2,000 mid- to high-level technical supervisors and engineers have been recruited from Taiwanese companies by mainland Chinese companies. Distributed in major LCD panel factories in mainland China. Introducing talents is a shortcut for development, but if LCD panel manufacturers in mainland China do not cultivate their own outstanding technical talents, I am afraid that they will have a long way to go in the panel industry.
3. The signs of disorderly expansion are highlighted
According to public data, there were 12 projects in Mainland China that were put into production, started construction and newly signed in 2016, with a total investment of 335.8 billion yuan. The signs of disorderly investment in the LCD liquid crystal display industry have begun to appear initially. The LCD liquid crystal factories rely on the strong support of local governments to blindly increase production lines, and the influx of enterprises may lead to overcapacity in the future. China is a major producer of display products. The demand for LCD screens is very large. However, it has invested heavily in the panel industry without restraint. In the long run, the investment risk is very high, and there may be excess production structure and performance in the future, or even an overall excess. , Which triggers vicious price competition, further reduces the RD expenses of enterprises, and ultimately leads to the stagnation of the entire industry.
In the future of the LCD panel industry, talents and technology will form product differentiation competition. If there is a lack of talents and technology, the disadvantages of large-scale investment expansion will gradually become prominent.
