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China"s first 8.5-generation TFT-LCD production line was launched in Bengbu, East China"s Anhui province, on June 18, 2019, representing a breakthrough in the production of high-definition LCD screen, Science and Technology Daily reported.

TFT-LCD, or Thin Film Transistor Liquid Crystal Display, is key strategic material of the electronic information display industry. The Gen 8.5 TFT-LCD production line, launched by the Bengbu Glass Industry Design and Research Institute of the China National Building Material Group, will produce high-definition LCD screens of 55 inches, the report said.

According to the Liquid Crystal Branch of the China Optics and Optoelectronics Manufactures Association, the demand for TFT-LCD in the Chinese mainland was about 260 million square meters in 2018, including 233 million square meters" Gen 8.5 TFT-LCD. However, the annual supply of domestically made TFT-LCD is less than 40 million square meters, with all of them Gen 6 or below, which cannot meet the demand in scale and quantity.

The association predicted that China"s market demand for Gen 8.5 TFT-LCD or above will exceed 300 million square meters by 2020, accounting for 49.6 percent of the total global demand.

The production and control precision of Gen 8.5 TFT-LCD is comparable to that of the semiconductor industry, representing a higher level of large-scale manufacturing of modern glass industry.

The institute in Bengbu, with 60 years of expertise in glass, has finally made a breakthrough in the production of Gen 8.5 TFT-LCD, and will provide key raw material guarantee for China"s LCD panel industry after it goes into mass production in September, the report said.

Attendees visit the booth of TV panel maker Shenzhen China Star Optoelectronics Technology during an international exhibition in Shanghai on July 11, 2019. [Photo by Lyu Liang/For China Daily]

Chinese companies have gained a competitive edge in the large-screen display industry and the exit of South Korean counterparts such as Samsung Electronics and LG Display from the liquid crystal display market will bring opportunities for China"s panel makers despite the challenges posed by the COVID-19 pandemic.

Market research firm Sigmaintell said BOE Technology Group Co Ltd－a leading Chinese supplier of display products and solutions－became the world"s largest shipper of LCD TV panels for the first time in 2019.

The Beijing-based company shipped 53.3 million units of LCD panels in 2019, with production capacity increasing by more than 20 percent on a yearly basis.

The consultancy said the LCD TV panel production area of Chinese manufacturers will account for more than 50 percent of the global total this year, surpassing South Korean competitors who are accelerating the shutdown of large-sized LCD panel production capacity due to competition from Chinese manufacturers.

It estimated the production capacity of large-sized LCD panels will continue to increase in China over the next three years. In addition, global LCD TV panel shipments stood at 283 million pieces last year, a slight decrease of 0.2 percent year-on-year. Meanwhile, the shipment area was 160 million square meters, an increase of 6.3 percent year-on-year.

"Chinese companies have gained an upper hand in large-screen LCD displays. Samsung and LG"s decision to exit from the LCD sector means Chinese panel makers will take a dominant position in this field," said Li Dongsheng, founder and chairman of Chinese tech giant TCL Technology Group Corp.

Li said South Korean firms will focus on organic LED screens and quantum dot LED displays, while Chinese TV panel makers are catching up at a rapid pace.

Data consultancy Digitimes Research said it comes as little surprise that Samsung has opted to withdraw from the LCD panel sector as its LCD business was losing money in every quarter of 2019 due to challenges from Chinese competitors.

BOE said its Gen 10.5 TFTLCD production line achieved mass production in Hefei, Anhui province, in March 2018. The plant mainly produces high-definition LCD screens of 65 inches and above. With a total investment of 46 billion yuan ($6.5 billion), the company"s second Gen 10.5 TFT-LCD production line launched operations in Wuhan, Hubei province, in December.

The Gen 11 TFT-LCD and active-matrix OLED production line of Shenzhen China Star Optoelectronics Technology, a subsidiary of TCL, officially entered operations in November 2018, producing 43-inch, 65-inch and 75-inch LCD screens.

Chen Lijuan, an analyst at Sigmaintell, said panel manufacturers should not just invest in production lines, but also pay more attention to the establishment of the whole supply chain, including raw materials, equipment and technology.

Bian Zheng, deputy director of research at AVC Revo, a unit of market consultancy firm AVC, said China will have a 51 percent market share in global TV shipments in 2020, while South Korea will have 25 percent, adding that large-screen TV panels will bolster healthy development of the industry.

Bian said the OLED and QLED will be the next-generation flat-panel display technologies to be in the spotlight. LG Display is currently the world"s only supplier of large-screen OLED TV panels.

OLED is a relatively new technology and part of recent display innovation. It has a fast response rate, wide viewing angles, super high-contrast images and richer colors. It is much thinner and can be made flexible, compared with traditional LCD display panels.