lcd panel manufacturer in stock
A liquid-crystal display (LCD) is a flat-panel display or other electronically modulated optical device that uses the light-modulating properties of liquid crystals. Liquid crystals do not emit light directly, instead using a backlight or reflector to produce images in color or monochrome. LCDs are available to display arbitrary images (as in a general-purpose computer display) or fixed images with low information content, which can be displayed or hidden, such as preset words, digits, and seven-segment displays, as in a digital clock. They use the same basic technology, except that arbitrary images are made up of a large number of small pixels, while other displays have larger elements. LCDs can either be normally on (positive) or off (negative), depending on the polarizer arrangement. For example, a character positive LCD with a backlight will have black lettering on a background that is the color of the backlight, and a character negative LCD will have a black background with the letters being of the same color as the backlight. Optical filters are added to white on blue LCDs to give them their characteristic appearance.
LCDs are used in a wide range of applications, including LCD televisions, computer monitors, instrument panels, aircraft cockpit displays, and indoor and outdoor signage. Small LCD screens are common in portable consumer devices such as digital cameras, watches, calculators, and mobile telephones, including smartphones. LCD screens are also used on consumer electronics products such as DVD players, video game devices and clocks. LCD screens have replaced heavy, bulky cathode ray tube (CRT) displays in nearly all applications. LCD screens are available in a wider range of screen sizes than CRT and plasma displays, with LCD screens available in sizes ranging from tiny digital watches to very large television receivers. LCDs are slowly being replaced by OLEDs, which can be easily made into different shapes, and have a lower response time, wider color gamut, virtually infinite color contrast and viewing angles, lower weight for a given display size and a slimmer profile (because OLEDs use a single glass or plastic panel whereas LCDs use two glass panels; the thickness of the panels increases with size but the increase is more noticeable on LCDs) and potentially lower power consumption (as the display is only "on" where needed and there is no backlight). OLEDs, however, are more expensive for a given display size due to the very expensive electroluminescent materials or phosphors that they use. Also due to the use of phosphors, OLEDs suffer from screen burn-in and there is currently no way to recycle OLED displays, whereas LCD panels can be recycled, although the technology required to recycle LCDs is not yet widespread. Attempts to increase the lifespan of LCDs are quantum dot displays, which offer similar performance as an OLED display, but the Quantum dot sheet that gives these displays their characteristics can not yet be recycled.
Since LCD screens do not use phosphors, they rarely suffer image burn-in when a static image is displayed on a screen for a long time, e.g., the table frame for an airline flight schedule on an indoor sign. LCDs are, however, susceptible to image persistence. The LCD screen is more energy-efficient and can be disposed of more safely than a CRT can. Its low electrical power consumption enables it to be used in battery-powered electronic equipment more efficiently than CRTs can be. By 2008, annual sales of televisions with LCD screens exceeded sales of CRT units worldwide, and the CRT became obsolete for most purposes.
The upstream materials or components of the LCD panel industry mainly include liquid crystal materials, glass substrates, polarizing lenses, and backlight LEDs (or CCFL, which accounts for less than 5% of the market).
The middle reaches is the main panel factory processing and manufacturing, through the glass substrate TFT arrays and CF substrate, CF as upper and TFT self-built perfusion liquid crystal and the lower joint, and then put a polaroid, connection driver IC and control circuit board, and a backlight module assembling, eventually forming the whole piece of LCD module. The downstream is a variety of fields of application terminal-based brand, assembly manufacturers. At present, the United States, Japan, and Germany mainly focus on upstream raw materials, while South Korea, Taiwan, and the mainland mainly seek development in mid-stream panel manufacturing.
With the successive production of the high generation line in mainland China, the panel production capacity and technology level have been steadily improved, and the industrial competitiveness has been gradually enhanced. Nowadays, the panel industry is divided into three parts: South Korea, mainland China, and Taiwan, and mainland China is expected to become the no.1 in the world in 2019.
In the past decade, China’s panel display industryhas achieved leapfrog development, and the overall size of the industry has ranked among the top three in the world. Chinese mainland panel production capacity is expanding rapidly, although Japanese panel manufacturers master a large number of key technologies, gradually lose the price competitive advantage, compression panel production capacity. Panel production is concentrated in South Korea, Taiwan, and China, which is poised to become the world’s largest producer of LCD panels.
Up to 2016, BOE‘s global market share continued to increase: smartphone LCD, tablet PC display, and laptop display accounted for the world’s first market share, and display screen increased to the world’s second, while TV LCD remained the world’s third. In LCD TV panels, Chinese panel makers have accounted for 30 percent of global shipments to 77 million units, surpassing Taiwan’s 25.5 percent market share for the first time and ranking second only to South Korea.
In terms of the area of shipment, the area of board shipment of JD accounted for only 8.3% in 2015, which has been greatly increased to 13.6% in the first half of 2016, while the area of shipment of hu xing optoelectronics in the first half of 2015 was only 5.1%, which has reached 7.8% in the first half of 2016. The panel factories in mainland China are expanding their capacity at an average rate of double-digit growth and transforming it into actual shipments and areas of shipment. On the other hand, although the market share of South Korea, Japan, and Taiwan is gradually decreasing, some South Korean and Japanese manufacturers have been inclined to the large-size HD panel and AMOLED market, and the production capacity of the high-end LCD panel is further concentrated in mainland China.
Domestic LCD panel production line capacity gradually released, overlay the decline in global economic growth, lead to panel makers from 15 in the second half began, in a low profit or loss, especially small and medium-sized production line, the South Korean manufacturers take the lead in transformation strategy, closed in medium and small size panel production line, South Korea’s 19-panel production line has shut down nine, and part of the production line is to research and development purposes. Some production lines are converted to LTPS production lines through process conversion. Korean manufacturers are turning to OLED panels in a comprehensive way, while Japanese manufacturers are basically giving up the LCD panel manufacturing business and turning to the core equipment and materials side. In addition to the technical direction of the research and judgment, more is the LCD panel business orders and profits have been severely compressed, Korean and Japanese manufacturers have no desire to fight. Since many OLED technologies are still in their infancy in mainland China, it is a priority to move to high-end panels such as OLED as soon as possible. Taiwanese manufacturers have not shut down factories on a large scale, but their advantages in LCD technology and OLED technology have been slowly eroded by the mainland.
STONE provides a full range of 3.5 inches to 15.1 inches of small and medium-size standard quasi TFT LCD module, LCD display, TFT display module, display industry, industrial LCD screen, under the sunlight visually highlight TFT LCD display, industrial custom TFT screen, TFT LCD screen-wide temperature, industrial TFT LCD screen, touch screen industry. The TFT LCD module is very suitable for industrial control equipment, medical instruments, POS system, electronic consumer products, vehicles, and other products.STONE provides a full range of 3.5 inches to 15.1 inches of small and medium-size standard quasi TFT LCD module, LCD display, TFT display module, display industry, industrial LCD screen, under the sunlight visually highlight TFT LCD display, industrial custom TFT screen, TFT LCD screen-wide temperature, industrial TFT LCD screen, touch screen industry. The TFT LCD module is very suitable for industrial control equipment, medical instruments, POS system, electronic consumer products, vehicles, and other products.
Our company specializes in developing solutions that arerenowned across the globe and meet expectations of the most demanding customers. Orient Display can boast incredibly fast order processing - usually it takes us only 4-5 weeks to produce LCD panels and we do our best to deliver your custom display modules, touch screens or TFT and IPS LCD displays within 5-8 weeks. Thanks to being in the business for such a noteworthy period of time, experts working at our display store have gained valuable experience in the automotive, appliances, industrial, marine, medical and consumer electronics industries. We’ve been able to create top-notch, specialized factories that allow us to manufacture quality custom display solutions at attractive prices. Our products comply with standards such as ISO 9001, ISO 14001, QC 080000, ISO/TS 16949 and PPM Process Control. All of this makes us the finest display manufacturer in the market.
Without a shadow of a doubt, Orient Display stands out from other custom display manufacturers. Why? Because we employ 3600 specialists, includingmore than 720 engineers that constantly research available solutions in order to refine strategies that allow us to keep up with the latest technologiesand manufacture the finest displays showing our innovative and creative approach. We continuously strive to improve our skills and stay up to date with the changing world of displays so that we can provide our customers with supreme, cutting-edge solutions that make their lives easier and more enjoyable.
Flat-panel displays are thin panels of glass or plastic used for electronically displaying text, images, or video. Liquid crystal displays (LCD), OLED (organic light emitting diode) and microLED displays are not quite the same; since LCD uses a liquid crystal that reacts to an electric current blocking light or allowing it to pass through the panel, whereas OLED/microLED displays consist of electroluminescent organic/inorganic materials that generate light when a current is passed through the material. LCD, OLED and microLED displays are driven using LTPS, IGZO, LTPO, and A-Si TFT transistor technologies as their backplane using ITO to supply current to the transistors and in turn to the liquid crystal or electroluminescent material. Segment and passive OLED and LCD displays do not use a backplane but use indium tin oxide (ITO), a transparent conductive material, to pass current to the electroluminescent material or liquid crystal. In LCDs, there is an even layer of liquid crystal throughout the panel whereas an OLED display has the electroluminescent material only where it is meant to light up. OLEDs, LCDs and microLEDs can be made flexible and transparent, but LCDs require a backlight because they cannot emit light on their own like OLEDs and microLEDs.
Liquid-crystal display (or LCD) is a thin, flat panel used for electronically displaying information such as text, images, and moving pictures. They are usually made of glass but they can also be made out of plastic. Some manufacturers make transparent LCD panels and special sequential color segment LCDs that have higher than usual refresh rates and an RGB backlight. The backlight is synchronized with the display so that the colors will show up as needed. The list of LCD manufacturers:
Organic light emitting diode (or OLED displays) is a thin, flat panel made of glass or plastic used for electronically displaying information such as text, images, and moving pictures. OLED panels can also take the shape of a light panel, where red, green and blue light emitting materials are stacked to create a white light panel. OLED displays can also be made transparent and/or flexible and these transparent panels are available on the market and are widely used in smartphones with under-display optical fingerprint sensors. LCD and OLED displays are available in different shapes, the most prominent of which is a circular display, which is used in smartwatches. The list of OLED display manufacturers:
MicroLED displays is an emerging flat-panel display technology consisting of arrays of microscopic LEDs forming the individual pixel elements. Like OLED, microLED offers infinite contrast ratio, but unlike OLED, microLED is immune to screen burn-in, and consumes less power while having higher light output, as it uses LEDs instead of organic electroluminescent materials, The list of MicroLED display manufacturers:
LCDs are made in a glass substrate. For OLED, the substrate can also be plastic. The size of the substrates are specified in generations, with each generation using a larger substrate. For example, a 4th generation substrate is larger in size than a 3rd generation substrate. A larger substrate allows for more panels to be cut from a single substrate, or for larger panels to be made, akin to increasing wafer sizes in the semiconductor industry.
"Samsung Display has halted local Gen-8 LCD lines: sources". THE ELEC, Korea Electronics Industry Media. August 16, 2019. Archived from the original on April 3, 2020. Retrieved December 18, 2019.
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In both LCD and OLED displays, producing these cells – which are highly complex – is by far the most difficult element of the production process. Indeed, the complexity of these cells, combined with the levels of investment needed to achieve expertise in their production, explains why there are less than 30 companies in the whole world that can produce them. China, for instance, has invested more than 300 billion yuan (approximately $45 billion USD) in just one of these companies – BOE – over the past 14 years.
Panox Display has been involved in the display industry for many years and has built strong and long-term partner relationships with many of the biggest OLED and LCD panel manufacturers. As a result, we are able to offer our clients guaranteed access to display products from the biggest manufacturers.
LG Display was, until 2021, the No. 1 display panel manufacturer in the world. Owned by LG Group and headquartered in Seoul, South Korea, it has R&D, production, and trade institutions in China, Japan, South Korea, the United States, and Europe.
Founded in 2001, AUO – or AU Optronics – is the world’s leading TFT-LCD panel manufacturer (with a 16% market share) that designs, develops, and manufactures the world’s top three liquid crystal displays. With panels ranging from as small as 1.5 inches to 46 inches, it boasts one of the world"s few large-, medium -and small-sized product lines.
AUO offers advanced display integration solutions with innovative technologies, including 4K2K ultra-high resolution, 3D, ultra-thin, narrow bezel, transparent display, LTPS, OLED, and touch solutions. AOU has the most complete generation production line, ranging from 3.5G to 8.5G, offering panel products for a variety of LCD applications in a range of sizes, from as small as 1.2 inches to 71 inches.
Now Sharp is still top 10 TV brands all over the world. Just like BOE, Sharp produce LCDs in all kinds of size. Including small LCD (3.5 inch~9.1 inch), medium LCD (10.1 ~27 inch), large LCD (31.5~110 inch). Sharp LCD has been used on Iphone series for a long time.
Beside those current LCDs, the industrial LCD of Sharp is also excellent and widely used in public facilities, factories, and vehicles. The Sharp industrial LCD, just means solid, high brightness, super long working time, highest stability.
Since its establishment, Truly Semiconductors has focused on researching, developing, and manufacturing liquid crystal flat panel displays. Now, after twenty years of development, it is the biggest small- and medium-sized flat panel display manufacturer in China.
Truly’s factory in Shanwei City is enormous, covering an area of 1 million square meters, with a net housing area of more than 100,000 square meters. It includes five LCD production lines, one OLED production line, three touch screen production lines, and several COG, LCM, MDS, CCM, TAB, and SMT production lines.
Its world-class production lines produce LCD displays, liquid crystal display modules (LCMs), OLED displays, resistive and capacitive touch screens (touch panels), micro camera modules (CCMs), and GPS receiving modules, with such products widely used in the smartphone, automobile, and medical industries. The LCD products it offers include TFT, TN, Color TN with Black Mark (TN type LCD display for onboard machines), STN, FSTN, 65K color, and 262K color or above CSTN, COG, COF, and TAB modules.
In its early days, Innolux attached great importance to researching and developing new products. Mobile phones, portable and mounted DVD players, digital cameras, games consoles, PDA LCDs, and other star products were put into mass production and quickly captured the market, winning the company considerable market share.
Looking forward to the future, the group of photoelectric will continue to deep LCD display field, is committed to the development of plane display core technology, make good use of global operations mechanism and depth of division of labor, promise customers high-quality products and services, become the world"s top display system suppliers, in 2006 in the global mobile phone color display market leader, become "Foxconn technology" future sustained rapid growth of the engine.
Founded in June 1998, Hannstar specializes in producing thin-film transistor liquid crystal display panels, mainly for use in monitors, notebook displays and televisions. It was the first company in Taiwan to adopt the world’s top ultra-wide perspective technology (AS-IPS).
The company has three LCD factories and one LCM factory. It has acquired state-of-the-art TFT-LCD manufacturing technology, which enables it to achieve the highest efficiency in the mass production of thin-film transistor liquid crystal display production technology. Its customers include many of the biggest and most well-known electronics companies and computer manufacturers in Taiwan and overseas.
TCL CSOT – short for TCL China Star Optoelectronics Technology (TCL CSOT) – was founded in 2009 and is an innovative technology enterprise that focuses on the production of semiconductor displays. As one of the global leaders in semiconductor display market, it has bases in Shenzhen, Wuhan, Huizhou, Suzhou, Guangzhou, and India, with nine panel production lines and five large modules bases.
TCL CSOT actively produces Mini LED, Micro LED, flexible OLED, printing OLED, and other new display technologies. Its product range is vast – including large, medium, and small panels and touch modules, electronic whiteboards, splicing walls, automotive displays, gaming monitors, and other high-end display application fields – which has enabled it to become a leading player in the global panel industry.
In the first quarter of 2022, TCL CSOT’s TV panels ranked second in the market, 55 inches, 65 " and 75 inches second, 8K, 120Hz first, the first, interactive whiteboard and digital sign plate; LTPS flat panel, the second, LTPS and flexible OLED fourth.
EDO (also known as EverDisplay Optonics) was founded in October 2012 and focuses on the production of small- and medium-sized high-resolution AMOLED semiconductor display panels.
Tianma Microelectronics was founded in 1983 and listed on the Shenzhen Stock Exchange in 1995. It is a high-tech enterprise specializing in the production of liquid crystal displays (LCD) and liquid crystal display modules (LCM).
After more than 30 years of development, it has grown into a large publicly listed company integrating LCD research and development, design, production, sales, and servicing. Over the years, it has expanded by investing in the construction of STN-LCD, CSTN-LCD, TFT-LCD and CF production lines and module factories across China (with locations in Shenzhen, Shanghai, Chengdu, Wuhan and Xiamen), as well R&D centers and offices in Europe, Japan, South Korea and the United States.
JDI (Japan Display Inc.) was established on November 15, 2011, as a joint venture between the Industrial Innovation Corporation, Sony, Hitachi, and Toshiba. It is dedicated to the production and development of small-sized displays. It mainly produces small- and medium-sized LCD display panels for use in the automotive, medical, and industrial fields, as well as personal devices including smartphones, tablets, and wearables.
Although Sony’s TVs use display panels from TCL CSOT (VA panel), Samsung. Sony still produces the world’s best micro-OLED display panels. Sony has many micro OLED model such as 0.23 inch, 0.39 inch, 0.5 inch, 0.64 inch, 0.68 inch, 0.71 inch. Panox Display used to test and sell many of them, compare to other micro OLED manufacuturers, Sony`s micro OLEDs are with the best image quality and highest brightness (3000 nits max).
Panox Display has built good relationship with major display manufacturers, and always stock enough goods according to the changing of market. Most of them can be continuously supplying.
The global LCD TV (Liquid Crystal Display Television) market was dominated by Samsung and remained so in 2021 with a market share of over 19 percent by sales volume. LG Electronics takes second place with close to 13 percent in the same year, to beat TLC, one of the well-established brands in this segment.Read moreMarket share of leading LCD TV manufacturers worldwide from 2019 to 2021, by sales volumeCharacteristic202120202019----
TCL. (March 11, 2022). Market share of leading LCD TV manufacturers worldwide from 2019 to 2021, by sales volume [Graph]. In Statista. Retrieved November 26, 2022, from https://www.statista.com/statistics/1266996/global-leading-manufacturers-lcd-tv-market-share-sales-volume/
TCL. "Market share of leading LCD TV manufacturers worldwide from 2019 to 2021, by sales volume." Chart. March 11, 2022. Statista. Accessed November 26, 2022. https://www.statista.com/statistics/1266996/global-leading-manufacturers-lcd-tv-market-share-sales-volume/
TCL. (2022). Market share of leading LCD TV manufacturers worldwide from 2019 to 2021, by sales volume. Statista. Statista Inc.. Accessed: November 26, 2022. https://www.statista.com/statistics/1266996/global-leading-manufacturers-lcd-tv-market-share-sales-volume/
TCL. "Market Share of Leading Lcd Tv Manufacturers Worldwide from 2019 to 2021, by Sales Volume." Statista, Statista Inc., 11 Mar 2022, https://www.statista.com/statistics/1266996/global-leading-manufacturers-lcd-tv-market-share-sales-volume/
TCL, Market share of leading LCD TV manufacturers worldwide from 2019 to 2021, by sales volume Statista, https://www.statista.com/statistics/1266996/global-leading-manufacturers-lcd-tv-market-share-sales-volume/ (last visited November 26, 2022)
BOE Technology Group, the Chinese electronic components producer, is expected to be the leader in producing LCD display panels in the coming years, with a forecast capacity share of 24 percent by 2022. China is the country that has the largest LCD capacity, with a 56 percent share in 2020.Read moreLCD panel production capacity share from 2016 to 2022, by manufacturerCharacteristicBOEChina StarInnoluxAUOLGDHKCCEC PandaSharpSDCOther-----------
DSCC. (June 8, 2020). LCD panel production capacity share from 2016 to 2022, by manufacturer [Graph]. In Statista. Retrieved November 26, 2022, from https://www.statista.com/statistics/1057455/lcd-panel-production-capacity-manufacturer/
DSCC. "LCD panel production capacity share from 2016 to 2022, by manufacturer." Chart. June 8, 2020. Statista. Accessed November 26, 2022. https://www.statista.com/statistics/1057455/lcd-panel-production-capacity-manufacturer/
DSCC. (2020). LCD panel production capacity share from 2016 to 2022, by manufacturer. Statista. Statista Inc.. Accessed: November 26, 2022. https://www.statista.com/statistics/1057455/lcd-panel-production-capacity-manufacturer/
DSCC. "Lcd Panel Production Capacity Share from 2016 to 2022, by Manufacturer." Statista, Statista Inc., 8 Jun 2020, https://www.statista.com/statistics/1057455/lcd-panel-production-capacity-manufacturer/
DSCC, LCD panel production capacity share from 2016 to 2022, by manufacturer Statista, https://www.statista.com/statistics/1057455/lcd-panel-production-capacity-manufacturer/ (last visited November 26, 2022)
In 1991, a business unit called Samsung Display was formed to produce the panels used in products made by its parent company, Samsung Electronics. Afterward, it was a leading supplier of LCD panels not just for Samsung Electronics but for other companies in the industry as well.
The business received a stay of execution when the pandemic led to a global surge in demand for consumer electronics, but that demand is now declining, and projections aren"t good for LCD panel revenue.
Add to that the fact that emerging technologies like QD-OLED are the future for TV and monitors, and the case for keeping Samsung Display"s LCD business going becomes a hard one to make.
Samsung Display will now focus heavily on OLED and quantum dot. Most of the employees working in the LCD business will move to quantum dot, the publication claims.
Even if there isn"t a statement about a change in direction, the writing has been on the wall for Samsung"s LCD business. Unless something radical changes, it"s more a question of when than if at this point.
This nearly $4.9 billion company is a Taiwanese manufacturer of flat panel displays used in a wide variety of consumer electronics products such as high-def televisions, smartphones, notebook computers, and the touch-screen technology now being used in automobiles and payment-processing terminals.
Roughly 20% of large thin-film transistor LCD (TFT) panels in the world are produced by AU Optronics. Almost all Sonyundefined televisions in 2014 used AU Optronics flat panels, while Panasonic, LG(, Toshiba, Philips
Among the world famous brands, the screen of South Korea"s samsung and LG is known to be produced and sold by themselves.Display screens of other niche brands, and those brands capable of self-production and self-marketing, also have an unassailable position in their own segments, facing various brands.For buyers, how to find suitable suppliers from these LCD panel manufacturers?
The world-renowned LCD panel production line is mainly controlled by several enterprises: au optronics in Taiwan;Chi mei electronics in Taiwan, China;Sharp, Japan;South Korea samsung, South Korea LG;Philips;Boe, etc.These companies supply the world"s main demand for liquid crystal displays.
LG Display is currently the world"s first LCD panel manufacturer. It is affiliated to LG group and headquartered in Seoul, South Korea.Its subsidiaries are: LG electronics, LG display, GS caltex, LG chemistry, LG life and health, etc., covering the fields of chemical energy, electronics and appliances, communication and service.LG Display"s customers include Apple, HP, DELL, SONY, Toshiba, PHILIPS, Lenovo, Acer and other world-class consumer electronics manufacturers.LG"s manufacturing base in China is in nanjing, shenyang.
Innolux is a tft-lcd panel manufacturing company founded by foxconn technology group in 2003.The factory is located in longhua foxconn technology park in shenzhen.Innolux has a strong display technology research and development team, coupled with foxconn"s strong manufacturing capacity, to effectively play the vertical integration benefits, to improve the level of the world plane display industry will have a pointer contribution.In March 2010, it merged with chi mei electronics and tong bao optoelectronics.
Au optronics, formerly known as acer technology, was founded in August 1996. It was renamed au optronics after the merger of au optronics and united optronics in 2001.Au optronics is the world"s first tft-lcd design, manufacturing and development company to be publicly listed on the New York stock exchange (NYSE).
Au optronics is the first manufacturer in the world to obtain ISO50001 energy management system certification and ISO14045 product system certification for ecological benefit assessment. Au optronics has been included in the dow Jones world sustainability index in 2010/2011 and 2011/2012, setting an important milestone for the industry.
Boe, founded in April 1993, is the largest display panel manufacturer in China and a provider of Internet of things technology, products and services.At present, boe has reached the world"s first place in the field of notebook LCD, flat LCD and mobile LCD. With its success in joining the apple supply chain, boe will become the world"s top three LCD panel manufacturers in the near future.
Sharp is known as "the father of LCD panel".Since its founding in 1912, sharp corporation has been developing the world"s first calculator and liquid crystal display, represented by the live pencil, which is the name of the company. At the same time, sharp corporation has been actively expanding new fields, contributing to the improvement of human living standards and social progress.Sharp is already owned by foxconn.
The company has set up tft-lcd key materials and technology national engineering laboratory, national enterprise technology center, post-doctoral mobile workstation, and undertakes national development and reform commission, ministry of science and technology, ministry of industry and information technology and other major national special projects.The company"s strong technology and scientific research capabilities become the cornerstone of the company"s sustainable development.
Seasonality played a part in the decline, but soft demand, supply chain disruptions and pricing pressure affected the numbers as well. From the Q1 earnings call: "Area shipment in Q1 was 8.14 million square meters, decreasing 13% from the previous quarter. Again, seasonality was a factor as well as soft demand in the downstream industry, leading to reduced shipment in large and medium panels. There are also production and shipment disruptions arising from parts supply and logistics issues due to lockdowns in China. Area ASP was $660, down 18% QoQ. Mobile shipments slowed due to seasonality and LCD panel price continued its downward slide."
The pricing pressure can be traced back to something that has long plagued LPL as mentioned in an earlier article. The display market has long suffered from manufacturers overproducing, causing supply to exceed demand and prices going down. This was less of a problem post-COVID as the stay-at-home trend and global stimulus ignited a boom in the sales of consumer products utilizing display panels like notebooks and TVs.
If there"s to be an improvement, it will have to come from the supply side. "To sum up, given that the demand uncertainties are not likely to go away anytime soon and this means that there is going to be some down cycle continuing this year. And moving into next year, then perhaps some of the demand uncertainties will be lifted and there could be some adjustment on the supply side and combined with these factors then the LCD cycle could improve next year."
LPL has turned to the OLED market as a solution to the woes in the LCD market. Sales of OLED TVs grew over 40% in Q1, outperforming the overall market, although profitability in the OLED segment remains a work in progress. However, for how long remains to be seen. Other display panel manufacturers have also started to take an interest in OLEDs.
For instance, China"s BOE recently kicked off mass production at its third OLED fab, which should help it increase its OLED market share to around 17% in 2022. BOE is not targeting the OLED TV segment at the moment, but it"s possible China could try to duplicate what it did in the LCD market. South Korean companies like LPL used to be number one in the display market, but that position now belongs to China with sales of $65B, giving it a 41.5% market share in 2021, increasing its lead over South Korea by about 8 points.
LPL is once again confronted with the same demons that it faced before and which made it very hard to stay profitable. After a lull induced by the COVID-19 boom, the LCD market is back to its old ways. COVID-19 set off a strong rebound in the numbers, but LPL has yet to prove it can manage on its own. Supply is swamping demand, leading to price declines. For instance, the average price of a 32-inch LCD panel display dropped by 64% YoY in Q1. The OLED market is in better shape, but for how long remains to be seen with China making big investments in OLED production.
It"s possible the display market could stabilize if, for instance, manufacturers in China temper their output of display panels, halting the decline in prices. However, past experience suggest that"s not likely to happen. It took a once in a lifetime pandemic to pull the display market out of the rut it was in. Barring something similar occurring once again, prospects for the display market are anything but positive.
LPL is at the end of the day a manufacturer of display panels. It"s difficult for a company to do well if the market it competes in is in a troubled state. The charts suggest the stock is heading lower with the road higher blocked by resistance. Take all this into account and keeping your distance from LPL is the way to go at this point.