lcd panel production cost quotation

According to TrendForce, LCD TV panel quotations bore the brunt of continuous downgrades in the purchase volume of TV brands and pricing for most panel sizes have fallen to record lows. Recently, it was announced that the 32-inch and 43-inch panels fell by approximately US$5~US$6 in early June, 55-inch panels fell approximately US$7, and 65-inch and 75-inch panels are also facing overcapacity pressure, down US$12 to US$14. In order to alleviate pressure caused by price decline and inventory, panel makers are successively planning to initiate more significant production control in 3Q22. According to TrendForce’s latest research, overall LCD TV panel production capacity in 3Q22 will be reduced by 12% compared with original planning.

As Chinese panel makers account for nearly 66% of TV panel shipments, BOE, CSOT, and HKC are industry leaders. When there is an imbalance in supply and demand, a focus on strategic direction is prioritized.  According to TrendForce, TV panel production capacity of the three aforementioned companies in 3Q22 is expected to decrease by 15.8% compared with their original planning, and 2% compared with 2Q22. Taiwanese manufacturers account for nearly 20% of TV panel shipments so, under pressure from falling prices, allocation of production capacity is subject to dynamic adjustment. On the other hand, Korean factories have gradually shifted their focus to high-end products such as OLED, QDOLED, and QLED, and are backed by their own brands. However, in the face of continuing price drops, they too must maintain operations amenable to flexible production capacity adjustments.

TrendForce indicates, in order to reflect real demand, Chinese panel makers have successively reduced production capacity. However, facing a situation in which terminal demand has not improved, it may be difficult to reverse the decline of panel pricing in June. However, as TV sizes below 55 inches (inclusive) have fallen below their cash cost in May (which is seen as the last line of defense for panel makers) and is even flirting with the cost of materials, coupled with production capacity reduction from panel makers, the price of TV panels has a chance to bottom out at the end of June and be flat in July. However, demand for large sizes above 65 inches (inclusive) originates primarily from Korean brands. Due to weak terminal demand, TV brands revising their shipment targets for this year downward, and purchase volume in 3Q22 being significantly cut down, it is difficult to see a bottom for large-size panel pricing. TrendForce expects that, optimistically, this price decline may begin to dissipate month by month starting in June but supply has yet to reach equilibrium, so the price of large sizes above 65 inches (inclusive) will continue to decline in 3Q22.

TrendForce states, as panel makers plan to reduce production significantly, the price of TV panels below 55 inches (inclusive) is expected to remain flat in 3Q22. However, panel manufacturers cutting production in the traditional peak season also means that a disappointing 2H22 peak season is a foregone conclusion and it will not be easy for panel prices to reverse. However, it cannot be ruled out, as operating pressure grows, the number and scale of manufacturers participating in production reduction will expand further and it timeframe extended, enacting more effective suppression on the supply side, so as to accumulate greater momentum for a rebound in TV panel quotations.

(2 November, 2017) – A major decrease in manufacturing cost gap between organic light-emitting diode (OLED) display and liquid crystal display (LCD) panel is expected to support the expansion of OLED TVs, according to new analysis from

analysis estimates that the total manufacturing cost of a 55-inch OLED ultra-high definition (UHD) TV panel -- at the larger end for OLED TVs -- stood at $582 per unit in the second quarter of 2017, a 55 percent drop from when it was first introduced in the first quarter of 2015. The cost is expected to decline further to $242 by the first quarter of 2021, IHS Markit said.

The manufacturing cost of a 55-inch OLED UHD TV panel has narrowed to 2.5 times that of an LCD TV panel with the same specifications, compared to 4.3 times back in the first quarter of 2015.

“Historically, a new technology takes off when the cost gap between a dominant technology and a new technology gets narrower,” said Jimmy Kim, principal analyst for display materials at IHS Markit. “The narrower gap in the manufacturing cost between the OLED and LCD panel will help the expansion of OLED TVs.”

However, it is not just the material that determines the cost gap. In fact, when the 55-inch UHD OLED TV panel costs were 2.5 times more than LCD TV panel, the gap in the material costs was just 1.7 times. Factors other than direct material costs, such as production yield, utilization rate, depreciation expenses and substrate size, do actually matter, IHS Markit said.

The total manufacturing cost difference will be reduced to 1.8 times from the current 2.5 times, when the yield is increased to a level similar to that of LCD panels. “However, due to the depreciation cost of OLED, there are limitations in cost reduction from just improving yield,” Kim said. “When the depreciation is completed, a 31 percent reduction in cost can be expected from now.”

by IHS Markit provides more detailed cost analysis of OLED panels, including details of boards, arrays, luminescent materials, encapsulants and direct materials such as driver ICs. The report also covers overheads such as occupancy rate, selling, general and depreciation costs. In addition, this report analyzes OLED panels in a wide range of sizes and applications.

Factors that may influence the price of a certain type of LCD include: screen size, viewing angle, maximum brightness, color display,resolution and frame rate.

Screen size: larger size display more, and larger size cost more, these’re common sense. For example, in last year’s iPhone 8P which used a 5.5-inch LCD screen, the display (including touchscreen) cost 52.5 dollars, while a 43-inch LCD TV cost 128 dollars.

Viewing angle: it’s the maximum angle at which a display can be viewed with acceptable visual performance. It’s measured from one direction to the opposite, giving a maximum of 180° for a flat, one-sided screen. Early LCDs had strikingly narrow viewing angles, for now most of the manufacturers have improved them to more than 160°.

Color display: in early or simple LCDs, only two or very few colors can be displayed. As the technology advances, TFT LCD can display up to 65536 colors.

As the diagram shows above, LCD module covers the most part of the cost of a LCD TV. Within LCD module, there’re still many components. In the following diagram we’ll show you the price breakdown of these components.

The third quarter in the year is usually the demand season of LCD module, as a result the price will be the highest. However, situation varies in different market.

Due to the massive investment and low cost of Chinese mainland manufacturer, the capacity of LCD module for TVs increases significantly, so the price of these modules stay pretty low for the past year.

In another aspect, technology innovations keep push the price of high-end LCD to a higher level. For many users that are planning to replace their old TVs, these high-end LCDs are tempting choices.

Actually, though LCD screen has many advantages, its average price is keep decreasing in the past years. New technology brings lower cost is one reason, a strong competitor called OLED is another.

Main difference between OLED and LCD is OLED can give out light itself, that is to say OLED screen can run at a lower load compared to LCD screen, at least it doesn’t need a backlight system.

Liquid crystal display (LCD) is a flat panel display that uses the light modulating properties of liquid crystals. Liquid crystals do not produce light directly, instead using a backlight or reflector to produce images in colour or monochrome.

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The production capacity for AMOLED panels is projected to grow from just 19 million square meters in 2019 to about 53.5 million square meters by 2025. LCD production capacity is expected to lose share to OLED, yet will still keep growing till reaching the peak of 328.3 million square meters in 2024.Read moreDisplay panel production capacity from 2016 to 2025, by type(in million square meters)CharacteristicLCDAMOLED---

DSCC. (June 8, 2020). Display panel production capacity from 2016 to 2025, by type (in million square meters) [Graph]. In Statista. Retrieved January 07, 2023, from https://www.statista.com/statistics/1057441/display-panel-production-capacity-type/

DSCC. "Display panel production capacity from 2016 to 2025, by type (in million square meters)." Chart. June 8, 2020. Statista. Accessed January 07, 2023. https://www.statista.com/statistics/1057441/display-panel-production-capacity-type/

DSCC. (2020). Display panel production capacity from 2016 to 2025, by type (in million square meters). Statista. Statista Inc.. Accessed: January 07, 2023. https://www.statista.com/statistics/1057441/display-panel-production-capacity-type/

DSCC. "Display Panel Production Capacity from 2016 to 2025, by Type (in Million Square Meters)." Statista, Statista Inc., 8 Jun 2020, https://www.statista.com/statistics/1057441/display-panel-production-capacity-type/

DSCC, Display panel production capacity from 2016 to 2025, by type (in million square meters) Statista, https://www.statista.com/statistics/1057441/display-panel-production-capacity-type/ (last visited January 07, 2023)

China is the leader in producing LCD display panels, with a forecast capacity share of 56 percent in 2020. China"s share is expected to increase in the coming years, stabilizing at 69 percent from 2023 onwards.Read moreLCD panel production capacity share from 2016 to 2025, by countryCharacteristicChinaJapanSouth KoreaTaiwan-----

DSCC. (June 8, 2020). LCD panel production capacity share from 2016 to 2025, by country [Graph]. In Statista. Retrieved January 07, 2023, from https://www.statista.com/statistics/1056470/lcd-panel-production-capacity-country/

DSCC. "LCD panel production capacity share from 2016 to 2025, by country." Chart. June 8, 2020. Statista. Accessed January 07, 2023. https://www.statista.com/statistics/1056470/lcd-panel-production-capacity-country/

DSCC. (2020). LCD panel production capacity share from 2016 to 2025, by country. Statista. Statista Inc.. Accessed: January 07, 2023. https://www.statista.com/statistics/1056470/lcd-panel-production-capacity-country/

DSCC. "Lcd Panel Production Capacity Share from 2016 to 2025, by Country." Statista, Statista Inc., 8 Jun 2020, https://www.statista.com/statistics/1056470/lcd-panel-production-capacity-country/

DSCC, LCD panel production capacity share from 2016 to 2025, by country Statista, https://www.statista.com/statistics/1056470/lcd-panel-production-capacity-country/ (last visited January 07, 2023)

Liquid Crystal Display (LCD) screens are a staple in the digital display marketplace and are used in display applications across every industry. With every display application presenting a unique set of requirements, the selection of specialized LCDs has grown to meet these demands.

LCD screens can be grouped into three categories: TN (twisted nematic), IPS (in-plane switching), and VA (Vertical Alignment). Each of these screen types has its own unique qualities, almost all of them having to do with how images appear across the various screen types.

This technology consists of nematic liquid crystal sandwiched between two plates of glass. When power is applied to the electrodes, the liquid crystals twist 90°. TN (Twisted Nematic) LCDs are the most common LCD screen type. They offer full-color images, and moderate viewing angles.

TN LCDs maintain a dedicated user base despite other screen types growing in popularity due to some unique key features that TN display offer. For one,

Displays with VA screens deliver wide viewing angles, high contrast, and good color reproduction. They maintain high response rates similar to TN TFTs but may not reach the same sunlight readable brightness levels as comparable TN or IPS LCDs. VA displays are generally best for applications that need to be viewed from multiple angles, like digital signage in a commercial setting.

Based on current trends, IPS and TN screen types will be expected to remain the dominant formats for some time. As human interface display technology advances and new product designs are developed, customers will likely choose IPS LCDs to replace the similarly priced TN LCDs for their new projects.

At present, TFT LCD touch panel prices rebounded, after six months of continuous decline, TFT LCD touch panel prices began to rebound at the end of July. Global TFT LCD panel prices have rebounded since August, according to Displaysearch, an international market-research firm. The price of a 17-inch LCD touch panel rose 6.6% to $112 in August, up from $105 in July, and fell from $140 in March to $105 in July. At the same time, 15 – inch, 19 – inch LCD touch panel prices also showed a different range of recovery. The price of a 17-inch LCD touch panel rose 5.8 percent, to $110, from $104 in late July, according to early August quotes from consulting firm with a view. Analysts believe the rebound will continue through the third quarter; LCDS will see seasonal growth in the third quarter, driven by back-to-school sales in us and the completion of inventory liquidation in the first half of the year. Dell and Hewlett-Packard (HPQ) started placing orders for monitors in the third quarter, and display makers Samsungelectronics (SXG) and TPV (TPV) are expected to increase production by 25% and 18% respectively.

It seems that due to the increasing demand in the market, the production capacity of the display panel production line has been released. Domestic TFT-LCD touch panel makers boe and Shanghai guardian said their production schedules have been set for September, and their production capacity may reach full capacity by the end of the year. Jd will produce 85,000 glass substrates per month (with a designed capacity of 90,000), according to boe and Shanghai guardian. Previously, panel makers have been hit by falling prices, with boe, SFT, and even international panel giant LG Philips all reporting losses. If the rebound continues into the fourth quarter, boe, Shanghai radio and television and other panel makers will use the rebound to reverse the decline, according to industry analysts.

It is understood that the first quarter of the boe financial results show that the company’s main business income of 2.44 billion yuan, a loss of 490 million yuan.Jd.com attributed the loss to a drop in the price of 17-inch TFT-LCD displays made by its Beijing TFT-LCD fifth-generation production line of Beijing boe photoelectric technology co., LTD., a subsidiary. Boe has issued the announcement of pre-loss in the first half of the year in April. Due to the influence of the off-season of TFT-LCD business operation in the first quarter of 2006, the company has suffered a large operating loss, and the low price in the TFT-LCD market has continued till now. Therefore, it is expected that the operating loss will still occur in the first half of 2006.LG Philips, the world’s largest TFT LCD maker, reported a won322bn ($340m) loss in July, compared with a won41.1bn profit a year earlier.LG Philips attributed the loss to fierce price competition and market demand did not meet expectations.

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