Global production capacity for large-size LCD panels (9-inch and above sizes) will undergo a major shift in 2019-2024, during which the ratio of China's capacity to global total large-size panel capacity will increase to over 50-60% due to continued capacity ramps by its major players including BOE Technology, China Star Optoelectronic Technology, HKC and China Electronics Corporation (CEC), according to Digitimes Research.
The relentless capacity expansions by China's panel makers will not only result in massive losses at most other panel players in the region, but also prompt particularly Korea's makers to realign their production lines, with plans to halt the operations of a number of their 7.5G/8.5G LCD lines during the period beginning the second half of 2019 to 2021, Digitimes Research notes.
While reducing their LCD panel production, Korea's makers are committing more investments to building up their capacity for OLED and QD-OLED panels. As a result, the proportion of Korea's capacity for large-size LCD panels to global production capacity will drop to about 10% by 2024, while Taiwan's makers will hold a slightly over 20%, Digitimes Research estimates.
During the 5-year forecast period, shipments of large-size LCD panels to the four major application segments - TVs, monitors and AIO PCs, notebooks and large-size tablets - will all decline, albeit slightly, year-on-year.
Shipments of large-size LCD TV panels will see its CAGR lag behind those for other applications as Korean makers are accelerating the buildups of their OLED production lines in Korea and China. However, shipments of large-size LCD panels for "other" applications such as automotive panels and digital signage boards are expected to enjoy a CAGR of nearly 10% during the forecast period.