Flat panel display should become China's pillar industry

Standing at the dawn of the "Thirteenth Five-Year Plan," we will look back at the "Eleventh Five-Year Plan" and the "Twelfth Five-Year Plan". Just ten years ago, the global display area was "Japan, South Korea and Taiwan". The Chinese mainland enterprises were just a start. The entrants have no market share and no international influence. In the 10 years, the semiconductor display industry in China, represented by BOE, has become the newly emerging “third pole”. The industry’s discourse power and international influence have been greatly improved, which has transformed the entire display industry from its original three-legged structure. The new pattern of industry in the three countries and four places.

Looking back on the past and looking forward to the future, when the global semiconductor display industry is the most volatile, China has completed five growth stages: "entrants, chasers, challengers, leaders, and leaders." Once, we changed from industry entrants to challengers; in the future, we will turn from industry challengers to leaders. This is already a predictable trend.

Since 2013, BOE has maintained a number of “firsts” in a row: gross margins are the highest in the industry in the world, annual number of newly added patent applications is the highest in the industry, global first product ratio ranks first in the global industry, and mobile phone panel shipments market The market share is the highest in the industry in the world and the market share of tablet PC panel shipments is the largest in the world. BOE has become one of the world's largest companies in the display industry.

At the same time, BOE proposes a limited and multi-dimensional expansion strategy. In addition to focusing on semiconductor display devices, it also added two other development directions: “Smart System Solutions” and “Health and Medical Services”. The former refers to the “Internet of Things and artificial intelligence solutions” and the latter refers to “the health of disruptive innovations. medical service". In the first half of 2015, BOE’s new strategy started from the technical level, and the technology R&D organization made new changes: First, the Group established 3 new research institutes—Materials and Devices, Internet of Things and Artificial Intelligence, and Information and Medicine. The second is to further strengthen the construction of the Display Technology Research Institute and include it in the display device business group sequence. From this, it becomes clearer that BOE is facing a new strategy with higher aspirations for the future.

BOE's aggressive strategy is based on the forward-looking foresight of the global semiconductor display technology and industry's future development trends. First of all, it is one of the trends to build larger and newer technology production lines. Therefore, BOE has built a 6-generation AMOLED production line in Chengdu and an 8.5-generation TFT-LCD production line in Fuzhou, and will build the only globally highest generation line in Hefei. The 10.5th generation TFT-LCD production line. After becoming the world's first mobile phone panel and tablet computer panel, BOE has become a leader in leading the world's large-size ultra-high-definition products.

Secondly, the industry leader in the future is not simply the expansion of the number of scales, but is committed to disruptive innovation. It is driven by the ultimate experience of end-users and application innovation in market segments. It requires the integration of various new technologies in the display area. The combination of multiple industry applications enables cross-border, disruptive innovation across the industry and embraces the fifth wave of display technologies (vehicle, medical, wear, etc.). The BOE entered the field of health services by attempting to integrate display technology, sensor technology, information technology, communication technology and medicine in a broader perspective, and establish a new big data service system in reshaping the industry.

Once again, semiconductor display devices (screens) and semiconductor integrated circuits (chips) will become more and more integrated. Therefore, as early as in 2012, we put forward the more visionary strategic direction of “core and air”. Currently, BOE has initiated the establishment of an industrial investment fund to develop semiconductor chips to promote industrial integration.

Finally, the strategic consensus that we must achieve is that no matter the mobile Internet or the Internet of things, semiconductor display devices are the basic components needed for any electronic products. Therefore, the rise of China's semiconductor display industry will inevitably affect the development of all of China's information industry. . Therefore, national strategy and industrial policy are crucial to the development of this industry. During the “Twelfth Five-Year Plan” period, semiconductor display was listed as a strategic “emerging industry”. In the upcoming “Thirteenth Five-Year Plan” period, it should be listed and objectively become China’s strategic “pillar industry”.