LCD panels are jointly promoted by policy, technology and capital

Review the development path of display technology and the rise and fall of the LCD industry in various countries, the LCD panel industry is capital-intensive, labor-intensive, and driven by market demand to continue to innovate and develop industries. The development of panel enterprises needs to be jointly promoted by policy support, technological development and capital investment.

LCD panels will continue to be the dominant display technology for the next 5-10 years

The main driver of emerging technologies is the growing consumer demand, and the core of commercialization of emerging technologies is still price. With the blessing of Mini-LED backlight and other technologies, LCD panels will meet consumers' new needs for high-definition display and large screen. Considering that the yield and cost of emerging technologies are difficult to solve in the short term, despite the competition of emerging technologies such as OLED, it is expected that LCD panels will still be the mainstream technology in the field of large-size displays in the next 5-10 years.

The cyclical weakening of LCD panels has greatly improved the profitability of manufacturers

Due to the 2-year construction period and the 1-year ramp-up period, the LCD panel showed a strong cyclical nature in the past. As the industry enters the late stage of maturity, manufacturers' willingness to build new production capacity has decreased significantly. According to our supply and demand model, the compound growth rate of LCD capacity in the next three years is 3.1%; The compound growth rate of the LCD demand side is about 6.5%, the supply and demand pattern of the industry is improving, the cyclical nature will be significantly weakened, the panel price will be maintained in a reasonable range, and the profitability of LCD panel manufacturers will be greatly improved.

The LCD panel has entered the great era of China, and the panel "double" has taken off

The display panel industry is a key industry supported by the state, and the state has issued a number of policies to support the development of China's panel industry. It took nearly 10 years for China's LCD panel manufacturing to complete the "leapfrog" development, break through the foreign technology blockade, enhance the mastery of core technologies, and complete the patent layout. The LCD industry chain has shifted to China, and it is expected that the market share of Chinese mainland will exceed 70% in the next 3-5 years.

Source: Think Tank for the Future