Development of small and medium LCD industry in China and advantages of business analysis

update: 8/29/2010 1:13:11 PM


In recent years, Japan, Korea, Taiwan and China as major markets flat-panel display technology has been developing extremely rapidly. Rapid changes in industrial structure. LCD industry is currently experiencing a TN / STN-LCD, CSTN-LCD, TFT-LCD to OLED development stage. Japan, South Korea, the Chinese display technology is still the main stay in TN / STN / CSTN area, occupied nearly 40% market share; TFT-LCD production capacity is very limited, basic imports, especially small and medium size TFT- LCD, but the field of China's TFT-LCD very rapid recent growth of investment, except for Taiwan-funded companies and Hong Kong and a number of big enterprises, domestic private enterprises such as: BYD, Yu Shun electronic momentum is quite amazing, China's global TFT-LCD is a rising star in the field.
First, the Chinese TN / STN / CSTN-LCD / LCM and Development of Small and Medium Size TFT-LCD/LCM

At present, small and medium size TFT-LCD market has exceeded the traditional TN / STN / CSTN market. According to H & Q survey, market size in 2007 reached 22.533 billion yuan TFT-LCD/LCM, TN / STN / CSTN-LCD / LCM only 15.959 billion yuan. Terms of market growth in 2006 -2010 in TN / STN / CSTN-LCD / LCM compound annual growth rate of 7.5%, small and medium size TFT-LCD is more than 24% (70% of this growth came from color mobile applications promotion), also reflects the TN / STN / CSTN bad market.

Exhibit 1: China TN / STN / CSTN-LCD / LCM and TFT-LCD/LCM market comparison

Source: H & Q century order

Despite the impact of TFT-LCD, TN / STN / CSTN-LCD notebook computers and gradually the areas of LCD TVs out of the market, but given the cost factors, small and medium size TFT-LCD will not completely replace the TN/STN/CSTN- LCD original game in the areas of mobile communications and applications, in particular vehicle before and after the end of the instrumentation, home appliances and other traditional TN applications.

In addition, China's case, the current domestic TFT-LCD investment concentrated in the 4.0 generation of more production lines, the majority of domestic enterprises are still the product structure, located in more profits to large-size TFT panel, leading to small and medium size TFT product capacity expansion is limited, which ultimately was decided in the future for a long period of time, TN / STN / CSTN-based panel will continue to occupy the Chinese market, an important seat panel.

Second, China TN / STN-LCD market demand analysis and business analysis edge

TN / STN-LCD Market Demand Analysis

Distribution from the consumer point of view, according to H & Q's investigation, communication terminal applications market in 2007 reached 11.267 billion yuan, is a TN / STN / CSTN main direction of the application. Second, automotive, car, 2007 TN / STN / CSTN application reached 1.253 billion yuan, due to the rapid development of China's automobile industry, automobile lights and display on the aesthetic aspects of the increasing requirements, front-end of 2007 China's automobile industry TN / STN / CSTN application reached 811 million yuan, the back-end application 442 million yuan. Office automation products, electronic products are now also the TN / STN / CSTN applications one of the key needs of direction, size of the market in 2007 reached 851 million yuan respectively, and 732 million yuan. Household appliances and digital products currently on the market is relatively small, respectively, 207 million yuan and 247 million yuan.

On the development trend, black and white mobile, low-end car, office automation and other traditional TN / STN applications in the future development will gradually become stable, while the emerging electronics industry, such as digital and digital electronic products other than , due to the substitution effect TFT gradually appear, will likely result in TN / STN final delisting in these areas.

Chart 2: Structure of China's annual demand TN/STN/CSTN-LCD/LCM2007

Source: H & Q century order

TN / STN-LCD Competitive Advantage Analysis

Currently TN / STN / CSTN-LCD suppliers of communications terminals in black and white home five of the domestic suppliers are Truly Semiconductors,, mid, BYD, ultrasonic electronics, and Yu-Shun Electronics. The five companies, at present there are four listed in Hong Kong or China. Yu Shun on the electronic situation, in 2007 in TN / STN / CSTN-LCD sales revenue and profits of domestic non-listed companies were among the first in the current product mix mainly in black and white mobile, automotive, instrumentation, etc. relative vitality strong applications, and this is continued good performance of the company one of the reasons. Overall, H & Q centuries, Yu Shun Electronics TN / STN areas listed companies already have good qualifications.

Third, small and medium size TFT-LCD market demand analysis and business analysis edge

Small and Medium Size TFT-LCD Market Demand Analysis

Small and Medium Size TFT-LCD panel applications compared with the large size of more extensive, mainly used in communications, consumer electronics, mobile office and other fields. Communications, mainly mobile phones, including PHS (PHS), smart phones and other small and medium size panel applications account for about 60%. Consumer electronics applications are many, and will continue to be rich in a global positioning system (GPS), MP3, MP4, portable media players (PMP), mobile DVD, digital cameras, camcorders, digital photo frames, personal digital assistants ( PDA), game consoles, printers, etc., can be described as dazzling. Which occupy the small and medium size digital products TFT-LCD demand 34.12%. In addition, the car displays and medical, industrial instrumentation on small and medium size TFT-LCD panel demand is also increasing rapidly.

Trend, the electronics small and medium size TFT-LCD applications (mainly MP3, games, learning machine / electronic dictionary, PDA, etc.) in the future development of its growth will slow in the communication terminal color phone, digital products and automotive application of products in 2006 -2 010 years of compound growth rate of close to 10%. The color screen cell phones, digital products and automotive products TFT composite rate of more than 20%, thus driving the entire TFT-LCD industry in the next few years will show growth trends.

Chart 3: China Small TFT-LCD/LCM, Demand Structure

Source: H & Q century order

Small and Medium Size TFT-LCD Competitive Advantage Analysis

At present, China's small and medium size TFT-LCD supply to 56.47 percent from South Korea, Japan and other foreign markets. Domestic producers, according to H & Q survey, Truly Semiconductors market top, 2007, Small and Medium Size TFT-LCD sales of more than 2.88 billion yuan; followed BYD, 700 million yuan;, mid-, 522 million; Yu Shun E, 1.4 million and ultrasonic electronics, 063 million yuan. The total run, Yu Shun Electronics TFT-LCD market is more than the listed companies of electronic ultrasound. Product structure, the buildings along now gradually to more profits to small and medium size TFT-LCD approach. Development, to expand the company's TFT products are not blind, but in both TN / STN / CSTN-LCD's stability based on the consumer market, slowly and surely build TFT-LCD production line, and positioning in the market, targeting small and medium size TFT-LCD products avoid large-sized domestic enterprises TFT-LCD products, direct contest. Expected future development, China will have a number of buildings along with the electronic equivalent of private enterprises emerge, consolidate China's flat panel display industry.

Conclusion: China's small and medium size LCD market as a whole development in good shape. TN / STN-LCD has an absolute global superiority in the next few years the industry will maintain a stable trend, the annual compound growth rate of 7.5%. Number of outstanding TN / STN-LCD business emerge, remove the already relatively well-known listed companies, Yu Shun Electronics, Formosa, and other health benefits is also a leader in the industry. In the TFT-LCD area, China now has begun to keep up with the pace of global development of a large group of domestic enterprises active in the field of small and medium size TFT-LCD development, you can meet China's TFT-LCD imports led to a situation will not far into the future face of subversion.




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