Vertical Divider
Musing on Production
Likely Consolidation in the LCD TV Panel Industry
April 12, 2020
A number of China-based companies including BOE Technology, TCL, Chongqing HKC and AVIC International Holding reportedly have shown interest in taking over control of CEC-Panda LCD Technology in order to consolidate their positions in China's LCD industry, according to industry observers. CEC-Panda is the 8th largest in terms of LCD TV panel shipments in 2019, trailing BOE, Innolux, LG Display, China Star Optoelectronics Technology (CSOT), Samsung Display, AU Optronics (AUO) and HKC, according to China-based Sigmaintell Consulting. Last year Panda generated ~118m/month in display sales as it expanded capacity (primarily Gen 8.5) over 2018. CEC also has a stake in other Chinese display supply chain companies including CHOT, a newer and smaller China-based panel producer, also running Gen 8.6 LCD fabs. CEC has considerable exposure to the LCD space, and while only 18 months ago most Chinese panel makers were planning and building out their LCD fabs, the resulting over-capacity caused the two top South Korean panel manufacturers to phase out LCD production ceding their LCD business to others.
Though BOE has said it will stop expanding its LCD production capacity, it is probably eyeing the CEC-Panda's IGZO technology that can drive OLED. According to CINNO Research, But TCL (CSoT), which became the world's largest TV panel supplier in February 2020 with an 18.8% share in unit shipments; and ranks first in area shipments with a 19.6% share could be a better takeover candidate for CEC-Panda. TCL has recently injected an additional CNY5 billion (US$707.19 million) into CSoT, boosting its stake in the panel maker to 90.72% from 88.82%. TCL also shipped 32 million TVs or 13% of global shipments to take second place in TV vendor rankings worldwide in 2019.
Corning disclosed that its LCD glass substrate facility in Shizuoka, Japan will stop manufacturing operations by year-end 2020 to ensure the company's operations are aligned with the display industry's current business environment. Corning said it will idle the plant's glass production lines later this year, and its LCD glass production will be redeployed to Corning's other manufacturing facilities. Corning said it will cease manufacturing operations at the Shizuoka plant in 2020, but parts of the facility will remain in use for CDT logistics and manufacturing organizations, as well as for the site's Corning Technology Center. The company said it will offer the Shizuoka employees job transfer opportunities, including moves to the Sakai City facility, or voluntary separation packages.
Likely Consolidation in the LCD TV Panel Industry
April 12, 2020
A number of China-based companies including BOE Technology, TCL, Chongqing HKC and AVIC International Holding reportedly have shown interest in taking over control of CEC-Panda LCD Technology in order to consolidate their positions in China's LCD industry, according to industry observers. CEC-Panda is the 8th largest in terms of LCD TV panel shipments in 2019, trailing BOE, Innolux, LG Display, China Star Optoelectronics Technology (CSOT), Samsung Display, AU Optronics (AUO) and HKC, according to China-based Sigmaintell Consulting. Last year Panda generated ~118m/month in display sales as it expanded capacity (primarily Gen 8.5) over 2018. CEC also has a stake in other Chinese display supply chain companies including CHOT, a newer and smaller China-based panel producer, also running Gen 8.6 LCD fabs. CEC has considerable exposure to the LCD space, and while only 18 months ago most Chinese panel makers were planning and building out their LCD fabs, the resulting over-capacity caused the two top South Korean panel manufacturers to phase out LCD production ceding their LCD business to others.
Though BOE has said it will stop expanding its LCD production capacity, it is probably eyeing the CEC-Panda's IGZO technology that can drive OLED. According to CINNO Research, But TCL (CSoT), which became the world's largest TV panel supplier in February 2020 with an 18.8% share in unit shipments; and ranks first in area shipments with a 19.6% share could be a better takeover candidate for CEC-Panda. TCL has recently injected an additional CNY5 billion (US$707.19 million) into CSoT, boosting its stake in the panel maker to 90.72% from 88.82%. TCL also shipped 32 million TVs or 13% of global shipments to take second place in TV vendor rankings worldwide in 2019.
Corning disclosed that its LCD glass substrate facility in Shizuoka, Japan will stop manufacturing operations by year-end 2020 to ensure the company's operations are aligned with the display industry's current business environment. Corning said it will idle the plant's glass production lines later this year, and its LCD glass production will be redeployed to Corning's other manufacturing facilities. Corning said it will cease manufacturing operations at the Shizuoka plant in 2020, but parts of the facility will remain in use for CDT logistics and manufacturing organizations, as well as for the site's Corning Technology Center. The company said it will offer the Shizuoka employees job transfer opportunities, including moves to the Sakai City facility, or voluntary separation packages.
Contact Us
|
Barry Young
|