Recently, Analysts from the Institute of Industrial Intelligence (MIC) analysts pointed out that as the main application products (LCD TVs, LCD monitors) have gradually slowed down their growth, and new capacity has been added after 2010, the global panel is expected in 2011. The supply and demand situation will present a slight oversupply, which will also make it difficult for global panel prices to rise in 2011.
It is understood that the high-generation line projects launched in mainland China include the BOE 8.5-generation line, Samsung Suzhou 7.5-generation line, AUO Longfei 8.5-generation line, TCL Huaxing Opto-electronics 8.5-generation line, and Guangzhou LGD8.5-generation line. In many cases, projects such as BOE, TCL Huaxing Optoelectronics, Samsung Suzhou, etc. have all started construction, and they are expected to start volume production from the third quarter of this year.
With a panel production capacity of 15 million pieces per company, the panel production of only five generations of high-end lines in mainland China reached 75 million. In addition, there are 2 high-generation lines in Taiwan (1 each of AUO and Chi Mei), 3 in Japan (1 in Panasonic, 2 in Sharp), 3 in South Korea (2 in Samsung, 1 in LG Display), and a global LCD panel. The output equivalent to 40/42 panels will reach only 200 million.
In contrast, according to the "Global TV Supply Survey Report" released by DisplaySearch, from 2008 to 2013, the global color TV demand will stabilize at between 200 million and 250 million units. The share of LCD TVs will increase year by year, but the growth rate will decrease year by year, until the share reaches more than 90%, and the maximum will be around 200 million units.
It is worth noting that the 200 million Taichung TVs include all sizes of LCD TVs. If the size is 40/42, this figure will be much lower. In response, Chi Mei’s general manager Wang Zhichao once expressed concern that “there must be a company downâ€. By 2012, the global LCD panel production capacity will exceed the market demand by at least 10%. If the production lines of more than 8 generations worldwide are put into operation as planned, There will be over 20% excess capacity.
Dr. Xu Yongjian, of the School of Information Science and Technology and the Institute of Electronics and Communication, also stated that the production of five high-level LCD panel lines will inevitably lead to an excess of liquid crystal panels. DisplaySearch also expects that the entire FPD (Flat Panel Display) industry will “be in an oversupply situation†by 2012 when mass production lines for Chinese domestic and foreign-funded companies “start mass productionâ€.
Industry sources pointed out that once the global LCD panel production capacity is surplus, LCD panels and TVs will be able to bring down the price, so that the previous FPD industry structure has undergone tremendous changes, and many color TV dealers believe that the largest excess LCD panel It may be that the LCD TV has become more cruel and the “price war†vortex has become a chaotic business environment. Eventually, it will not only cause dealers to increase sales difficulty and reduce profits, but will also lead to lower profit margins for manufacturers.
It is understood that the high-generation line projects launched in mainland China include the BOE 8.5-generation line, Samsung Suzhou 7.5-generation line, AUO Longfei 8.5-generation line, TCL Huaxing Opto-electronics 8.5-generation line, and Guangzhou LGD8.5-generation line. In many cases, projects such as BOE, TCL Huaxing Optoelectronics, Samsung Suzhou, etc. have all started construction, and they are expected to start volume production from the third quarter of this year.
With a panel production capacity of 15 million pieces per company, the panel production of only five generations of high-end lines in mainland China reached 75 million. In addition, there are 2 high-generation lines in Taiwan (1 each of AUO and Chi Mei), 3 in Japan (1 in Panasonic, 2 in Sharp), 3 in South Korea (2 in Samsung, 1 in LG Display), and a global LCD panel. The output equivalent to 40/42 panels will reach only 200 million.
In contrast, according to the "Global TV Supply Survey Report" released by DisplaySearch, from 2008 to 2013, the global color TV demand will stabilize at between 200 million and 250 million units. The share of LCD TVs will increase year by year, but the growth rate will decrease year by year, until the share reaches more than 90%, and the maximum will be around 200 million units.
It is worth noting that the 200 million Taichung TVs include all sizes of LCD TVs. If the size is 40/42, this figure will be much lower. In response, Chi Mei’s general manager Wang Zhichao once expressed concern that “there must be a company downâ€. By 2012, the global LCD panel production capacity will exceed the market demand by at least 10%. If the production lines of more than 8 generations worldwide are put into operation as planned, There will be over 20% excess capacity.
Dr. Xu Yongjian, of the School of Information Science and Technology and the Institute of Electronics and Communication, also stated that the production of five high-level LCD panel lines will inevitably lead to an excess of liquid crystal panels. DisplaySearch also expects that the entire FPD (Flat Panel Display) industry will “be in an oversupply situation†by 2012 when mass production lines for Chinese domestic and foreign-funded companies “start mass productionâ€.
Industry sources pointed out that once the global LCD panel production capacity is surplus, LCD panels and TVs will be able to bring down the price, so that the previous FPD industry structure has undergone tremendous changes, and many color TV dealers believe that the largest excess LCD panel It may be that the LCD TV has become more cruel and the “price war†vortex has become a chaotic business environment. Eventually, it will not only cause dealers to increase sales difficulty and reduce profits, but will also lead to lower profit margins for manufacturers.
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