Published :3/22/2021 8:12:43 AM
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On March 22, the price of PC computer LCD panels (LiquidCrystalDisplay, referred to as LCD) continued to rise.
Taking the trading price of notebook computer panels as an example, the price of large-scale orders of 15.6-inch HD resolution LCD panels as an indicator rose to about 35.5 US dollars per sheet in February, an increase of about 4% from the previous month. Nikkei pointed out that the shortage of panel "driver IC" supply has intensified. Omdia analysts said that the production equipment of the semiconductor factory is used for automotive semiconductors with high profit margins.
According to a previous report by the Taiwan Economic Daily, a person in the IC design industry revealed that the foundry capacity is now very tight and belongs to a "seller's market." Compared with other chips, the foundry prices of driver ICs have always been low. Recently, due to the rising demand for panels and mobile phones, related manufacturers will inevitably increase prices in order to strive for more production capacity.
From a domestic perspective, China’s two major LCD panel manufacturers have suffered a lot of setbacks in the process of becoming the world’s top two LCD panel manufacturers. Due to the substantial increase in China’s LCD panel production capacity, the global LCD panel market once experienced overcapacity leading to LCD panel prices. The decline put heavy pressure on these two LCD panel companies.
The impact of the new crown epidemic in 2020 has unexpectedly brought benefits to the two major LCD panel manufacturers in China. Due to the implementation of home isolation measures, the global market's demand for TVs has soared; affected by the epidemic, consumers' incomes have fallen and consumers have switched to prices. Affordable LCD TVs eventually promoted the surge in demand for LCD panels in the global market, and the prices of LCD panels continued to rise as a result.
So China's two major LCD panel manufacturers ushered in a golden age. According to the performance forecast released by BOE, its net profit is expected to increase by 150%-166% year-on-year to 4.8 billion-5.1 billion yuan in 2020; TCL's results show that its net profit in 2020 will increase by 151.1% year-on-year. It can be said that China Two major LCD panel companies have become the biggest winners in the panel industry.
