lcd panel price trend 2021 quotation

Prices for all TV panel sizes fluctuated and are forecast to fluctuate between 2020 and 2022. The period from March 2020 to July 2021 saw the biggest price increases, when a 65" UHD panel cost between 171 and 288 U.S. dollars. In the fourth quarter of 2021, such prices fell and are expected to drop to an even lower amount by March 2022.Read moreLCD TV panel prices worldwide from January 2020 to March 2022, by size(in U.S. dollars)Characteristic32" HD43" FHD49"/50" UHD55" UHD65" UHD------

DSCC. (January 10, 2022). LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) [Graph]. In Statista. Retrieved February 08, 2023, from https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. "LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars)." Chart. January 10, 2022. Statista. Accessed February 08, 2023. https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. (2022). LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars). Statista. Statista Inc.. Accessed: February 08, 2023. https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. "Lcd Tv Panel Prices Worldwide from January 2020 to March 2022, by Size (in U.S. Dollars)." Statista, Statista Inc., 10 Jan 2022, https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC, LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) Statista, https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/ (last visited February 08, 2023)

LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) [Graph], DSCC, January 10, 2022. [Online]. Available: https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

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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.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at vivieliu@trendforce.com

For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insider.trendforce.com/

Browse Detailed TOC, Tables, and Figures with Charts which is spread across 111 Pages that provide exclusive data, information, vital statistics, trends, and competitive landscape details in this niche sector.

LCD TV Panel Market Size is projected to Reach Multimillion USD by 2027, In comparison to 2021, at unexpected CAGR during the Forecast Period 2022-2028.

Considering the economic change due to COVID-19 and Russia-Ukraine War Influence, LCD TV Panel accounted for % of the global market of LCD TV Panel in 2022.

This LCD TV Panel Market Report offers analysis and insights based on original consultations with important players such as CEOs, Managers, Department Heads of Suppliers, Manufacturers, Distributors, etc.

The Global LCD TV Panel Market is anticipated to rise at a considerable rate during the forecast period, between 2022 and 2027. In 2021, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

LCD displays utilize two sheets of polarizing material with a liquid crystal solution between them. An electric current passed through the liquid causes the crystals to align so that light cannot pass through them. Each crystal, therefore, is like a shutter, either allowing light to pass through or blocking the light. LCD panel is the key components of LCD display. And the price trends of LCD panel directly affect the price of liquid crystal displays. LCD panel consists of several components: Glass substrate, drive electronics, polarizers, color filters etc. Only LCD panel applied for TV will be counted in this report

Samsung Display, LG Display, Innolux Crop and AUO captured the top four revenue share spots in the LCD TV Panel market in 2015. Samsung Display dominated with 22.11 percent revenue share, followed by LG Display with 19.72 percent revenue share and Innolux Crop Display with 19.30 percent revenue share.

The global LCD TV Panel market is valued at USD 51130 million in 2019. The market size will reach USD 59640 million by the end of 2026, growing at a CAGR of 2.2% during 2021-2026.

LCD TV Panel market is segmented by Size, and by Application. Players, stakeholders, and other participants in the global LCD TV Panel market will be able to gain the upper hand as they use the report as a powerful resource. The segmental analysis focuses on production capacity, revenue and forecast by Size and by Application for the period 2016-2027.

The report focuses on the LCD TV Panel market size, segment size (mainly covering product type, application, and geography), competitor landscape, recent status, and development trends. The report considers key geographic segments and describes all the favorable conditions driving the market growth.

Geographically, the Major Regions Covered in LCD TV Panel Market Report Are:To comprehend LCD TV Panel market dynamics across major global regions. ● North America(United States, Canada)

South Korean display panel maker LG Display said it planned to cut costs in the first half of this year after posting a record quarterly loss, as global demand for smartphones, computers and televisions remains depressed. The Apple Inc supplier flagged a turnaround in the second half, pledging cost-cutting and inventory management until demand for its screens recovers later in the year. With the economic outlook uncertain, purchases of screens fell short of sales of tech devices as clients used up their inventories in the December quarter, a trend which is expected to continue in the first half, LG Display said.

From the perspective of global macroeconomic performance, it is not difficult to find by tracking the IMF’s forecast data on global GDP growth, that the economic performance of various regions in the world has been significantly differentiated in the post-epidemic era. The relatively strong economic performance of developed economies has certain support for the global consumer electronics market, especially the demand for high-end products, while the performance of emerging economies is relatively less optimistic, showing a trend of differentiation.

In this context, the global consumer electronics market where LCD is located is affected in many ways. First of all, due to the pull of the economy, purchasing power can still remain strong, especially the commercial and education market demand in the North American market will remain relatively strong. There is also a downside. Due to the promotion of consumer demand in the early stage, especially the resident assistance policy, the phenomenon of demand overdraft has already occurred, and consumer demand will be affected by demand overdraft, and the future trend is not optimistic.

First, exports are not optimistic, especially due to factors such as the fading of epidemic dividends, the increase in inflation risks, and the increase in costs caused by shipping congestion. It is expected to show a gradual weakening trend in 2022.

From the perspective of LCD panel shipment performance, according to the shipment performance of the four major mainstream LCD applications such as TV, Monitor, Notebook, and Mobile in 2021, it shows the characteristics of “weak at both ends and strong in the middle”. Looking forward to 2022, the shipments of LCD for mobile phones are expected to remain relatively stable, while the shipments of large-size LCD panel applications such as Notebook, Monitor, and TV have experienced a year-on-year decline of varying degrees due to the fading dividends of the epidemic, but the shipment area of large-size panels has performed significantly better than performance in terms of shipments. From the perspective of notebook LCD shipment performance, it is expected that the shipment area in 2022 will decrease by 3.8% year on year, and the decline in the area is lower than the decline in quantity. The shipment area of Monitor and TV panels can still maintain relatively good growth. The area growth brought about by large size is still the most effective way for LCD panel manufacturers to reduce production capacity.

Among large-size LCD applications, TV panels are the absolute main force in reducing production capacity. From the perspective of the shipment area in the first three quarters of 2021, TV panel shipments account for more than 70% of all application panel shipments. In the future, it is expected that the global display panel market will still exhibit cyclical fluctuations, and TV panels will still undertake the important task of reducing production capacity. Since the second half of 2020, the LCD panel price, especially the increase in the price of large-size panels, has driven the profitability of LCD manufacturers to improve significantly. At present, manufacturers are still in a period of high profitability. Of course, it cannot be ignored that the price of large-size panels continues to decline. It is expected to face profit challenges in 2022. The profitability of LCD manufacturers will face differentiation, and some manufacturers may fall into loss expectations.

From the perspective of production capacity investment, investment in the global display panel market will show two characteristics: first, the pace of investment in new LCD lines by panel manufacturers has slowed down significantly; second, investment in OLED will remain active, but the direction of investment in OLED will change. Significant changes occurred.

First of all, it turns out that panel manufacturers are very active in investing in small-sized OLEDs, especially flexible OLEDs. The future investment strategy will shift from small-sized to medium-to-large-sized, and from low-generation (6th generation) to mid-to-high-generation lines. According to statistics, it is expected that three 8.5-generation OLED production lines will usher in mass production by 2025. At the same time, the change of OLED investment direction will also change from the original Flexible OLED to multi-technology, WOLED will continue to expand production, and QD-OLED production capacity will continue to increase. At present, panel manufacturers represented by Korean factories（SAMSUNG & LG） are very active in investing in Hybrid OLED. Statistics show that it is expected that the global OLED display panel production area will continue to grow by more than 10% by 2025, especially with the gradual mass production of high-generation OLED production lines. It is expected that QD-OLED and Hybrid OLED will play an increasingly important role in the global OLED panel market from 2023.

Although the investment pace of panel manufacturers in LCD panels has slowed down, Chinese panel manufacturers still maintain a positive strategy for the expansion of existing production lines. The expansion of production will also drive the continuous growth of the supply area of LCD panels. According to statistics, it is expected that the global display panel production capacity will reach a high-speed growth of 12% year-on-year in 2022, and the overall production capacity growth rate will reach the largest increase since 2013. Therefore, it can be predicted that the pressure on panel manufacturers to reduce production capacity in 2022 should not be underestimated.

How will the global display industry pattern evolve? In 2021, an obvious “one superpower, many strong” competition pattern has been formed. BOE maintains a very clear leading edge in all applications. The market share of each application market has exceeded 20% in terms of the number of shipments and shipment area, and the leading edge is obvious. There is an imbalance in other panel manufacturers. Most manufacturers have certain competitive advantages in some fields, but the overall competitiveness is still not strong. For example, TCL (CSOT) and HKC can maintain a market share of about 15% in the TV panel market. It cannot be ignored that the performance of the IT application panel and the Mobile application panel is still relatively weak. Under this competitive landscape, it is expected that Chinese panel manufacturers including TCL and HKC will adopt active strategies for LCD applications other than TV in the future, including the expansion of existing production lines, and strive for opportunities to increase investment in new production lines.

Let’s look at the evolution of the competitive landscape of OLED. At present, OLED technology, especially in mobile phone applications, has gradually gained popularity. According to statistics, the overall proportion of OLED in the global smartphone shipments will reach nearly 40% in 2021, and will continue to grow in the future. The proportion will be close to 50% before 2025. In particular, the penetration rate of flexible OLEDs in mobile phone applications has shown a trend of significant growth. In 2021, the overall proportion will reach 22%, and it is expected that this proportion will continue to increase to 33% by 2023. From the perspective of panel makers, currently, flexible OLEDs are still dominated by Korean factories. Samsung Display will account for more than 50% of the entire global flexible OLED market in 2021. Although it will shrink due to the increase in production capacity from Chinese panel makers, it will also shrink in 2022. But it will still maintain a share of about 50% in 2022. Chinese panel manufacturers are particularly active in capacity expansion, especially BOE, TCL, and Visionox are all actively deploying flexible OLEDs. It is expected that the market share in 2022 will increase significantly compared to 2021.

Changes in the panel supply pattern have a huge impact on the global display industry, and will inevitably bring about changes in the industrial chain cooperation model. Under the current competitive landscape and environmental background, the global display industry should pay special attention to the industry chain.

The first is the upstream material supply chain. The shortage of upstream materials, especially semiconductor materials, has accelerated the restructuring of the upstream supply chain in the past year or so. Panel manufacturers pay more attention to the risk management of the supply chain. Chinese panel manufacturers will continue to expand and cooperate with local manufacturers. BOE is constantly introducing more local partners, and will continue to strengthen its thinking on display semiconductor materials in the future; TCL will also introduce more local supply chains to prevent supply chain risks and actively seek win-win cooperation with upstream manufacturers situation. From the downstream point of view, the diversified layout of the supply chain will become an obvious trend to prevent supply chain risks and achieve the purpose of supply chain balance.

In 2022, the overall demand for TV panels is not optimistic, but there are structural opportunities. The famous brand’s overall stocking strategy tends to be conservative, which affects the number of panel shipments to maintain a year-on-year downward trend. However, thanks to the accelerated promotion of large-scale size, the shipment area continues to increase. At the same time, from the perspective of subdivisions, although the performance of the 8K LCD market is mediocre, the shipment scale of OLED panels and high refresh rate panels will expand significantly, which is worth looking forward to. Especially in 2022, Samsung Electronics and other leading TV manufacturers will join the OLED camp, and Samsung Electronics will also carry out active and strategic cooperation with LGD in the WOLED field, which is expected to drive the global OLED TV and OLED TV panel shipments to continue to expand. According to statistics, the number of OLED TV panel shipments in 2021 will reach 7.6 million units, a year-on-year increase of 72.2%. It is estimated that the global OLED TV panel shipment scale will exceed 10 million units in 2022, with a year-on-year growth rate of 47.1%.

On the whole, in 2022, the plans of various panel factories will gradually become differentiated, the supply scale of panel factories in mainland China will continue to increase, and Taiwanese and Korean manufacturers have reduced the number of TV panels planned to vary degrees.

In 2022, the overall LCD TV supply and demand environment will be loose. In the first quarter, there will be excess supply in the off-season, and panel prices will continue to decline, but the decline will gradually narrow. In the second quarter, supply and demand will tend to balance, and panel prices are expected to stabilize.

The gradual increase in the production capacity of displayers, coupled with the growth of LCD panel manufacturers in monitor display supply planning, is expected to maintain a growth trend in the supply trend of display panels in 2022. Combined with the changes in the demand structure, the overall supply and demand situation in 2022 will be relatively loose. Therefore, it will lead to a continuous decline in the cost of displayer panels in at least the first half of 2022. Affected by the demand structure, the upgrade momentum of the monitor market will slow down, but there are still representative markets with growth potential, such as the Gaming monitor, which is driven by the dual engines of 240Hz and OLED, and the Gaming displayer market in 2022 can still maintain positive growth; Another example is Ultrawide displayer. Under the influence of the active strategy of suppliers, the joint force of the entire supply chain will promote the positive growth of the Ultrawide displayer market in 2022; the Curved surface LCD market will enter a state of slow growth, with the hope that the market can find new growth momentum.

With the growth of Notebook LCD production capacity, especially the mid-to-high-end production capacity, the supply shortage of Notebooks will be significantly eased in 2022. From the purchasing point of view, there is a certain risk of saturation in the notebook market in 2022. Therefore, in 2022, we should be alert to the risk of oversupply. In this process, there is still a positive side, such as the accelerated trend of large-scale LCD size and structural upgrading, etc. Accelerating this change will have a better impact on the market.

By sorting out the development potential of 5 core technologies such as Gaming, OLED, LTPS, Oxide, and Mini-LED in LCD panel applications for Notebook, we believe that on the whole, in 2022, the situation of the coexistence of multiple new notebook technologies and development and competition will become more obvious. In the process, the technologies with the greatest development potential in 2022 are Gaming, OLED, and LTPS; Oxide has slowed down in the past 2 years due to the influence of certain factors, but we believe that after 2023, Oxide will usher in new. The development of Mini-LED is limited in the future due to the high cost.

In 2021, under the panel supply pattern with the participation of BOE and Samsung Display, and more players, the competition in the smartphone panel market will show a hot trend, and the integration of the industry chain will also accelerate. In terms of technology types, the trend of the proportion of each technology type shows a differentiation phenomenon. Among them, the demand for flexible OLED continues to grow driven by the supply side. It is estimated that by 2025, the market share of flexible OLED smartphone panels will reach about 33%; In addition to the growth of flexible OLEDs, the penetration rates of a-Si（IPS）, LTPS, rigid OLEDs, etc. are all in a downward trend, forming a “hamburger” shape market.

In recent years, smartphone terminal brands have maintained high inventory levels. As of the end of 2021, there will still be a lot of inventory in some technology-specific panels, but the demand for flexible OLED panels for high-end brands in 2022 will still show a growing trend. The structure of the supply chain is shifting to mainland China. At the same time, flexible OLED panel factories in mainland China will also grow rapidly, and the customer structure will be further enriched.

The foldable smartphone has great growth potential in the next 3 years. Statistics show that the global shipments of folding display panels will be close to 13 million units in 2021, and it is expected to be close to 80 million units by 2025. The compound growth rate from 2019 to 2025 will reach About 88%, showing a trend of rapid growth. From the perspective of manufacturers, Samsung Display, a Korean manufacturer, will continue to dominate for a long time, and the global foldable display panel market share will stabilize at around 80%. More and more Chinese panel manufacturers are participating, such as BOE, TCL, Visionox, and other manufacturers, but based on the current capacity planning and overall technical strength of Chinese panel manufacturers, we believe that the scale of shipments is still relatively limited, and the proportion of Chinese panel manufacturers will be around 20%.

In terms of technology, the development trend of the in-vehicle displays toward large size and high resolution is also very clear. At the same time, in the future, there will be more and more car brands and models equipped with OLED. However, considering that it is more difficult to apply vehicle display technology, it is estimated that by 2025, the shipment of OLED vehicle displays will be about 3 million pcs. Mini-LED backlight products have been mass-produced in other applications, but currently, there are relatively few applications in the automotive field. There are already models released, and mass production is expected to be achieved in 2022. Mini-LED backlight is an upgrade of a-Si LCD, and each panel factory has a layout. Therefore, we expect that by 2025, the shipment of Mini-LED backlight vehicle display products will reach about 4 million pieces, with rapid growth.

In summary, the LCD applications and market in 2022 will see significant technological advances alongside the challenges. As an LCD supplier and manufacturer, VISLCD is optimistic about the future of LCD development and will maintain stable shipments and reasonable market prices, regardless of whether the market is hot or the demand is slow so that we can move forward together with our customers.

That’s according to data from the market watcher WitsView, which said this week that LCD TV panel prices rose by just 0.3% from mid-June to July. That follows an earlier decrease in the rate of LCD TV panel price growth from mid-May to June, South Korean tech news website The Elec said.

LCD TV panel prices had endured years of decline up until early 2020, as the market became swamped by Chinese manufacturers that looked to compete with South Korea display makers on volume and cost. However, with the emergence of the COVID-19 pandemic last year and the disruption it caused to supply chains, the price of LCD TV panels jumped as they suddenly became more scarce. And prices have continued rising ever since.

Samsung Display and LG Display had both originally planned to quit making LCD TV display panels altogether, however the sharp rise in prices, coupled with a need to secure their own supply of them, caused them to postpone those plans. For instance Samsung Display, which was scheduled to stop making LCD TV panels in March 2021, announced in January that it would continue making them until at least the end of this year, and perhaps even longer. Just days later, LG Display announced that it too would keep its LCD TV panel production line up and running following a request from its parent firm LG Electronics, which was concerned about low supplies.

Despite the decelerating price growth seen last month, WitsView said the LCD TV display market remains very profitable as supplies are still tight. The price of a 75-inch LCD TV panel in at the beginning of July reached $407, up 0.2% from the month before. And 65-inch panel prices rose 0.3% to $297 in the same time frame.

Elsewhere, 55-inch panels hit an average price of $237, 50-inch panels were $198, 43-inch panels cost $148 and 32-inch panels sold for $88, WitsView said. The prices quoted are for 100 and 120Hz panels.

WitsView analysts said LCD panel prices are still much higher than one year ago. In July 2020, the average 75-inch display cost just $318, while 65-inch displays fetched $174 each. So prices are up about 30% on average, the data shows.

Another analyst firm, Display Supply Chain Consultants, has previously forecast that LCD panel prices will begin to decline in the second half of this year due to an expected reduction in demand in North American markets and greater supplies as factories in China return to normalcy. Even so, LCD TV panel makers are expected to continue to pump out as many panels as they can while the going is good, DSCC said.

Once the price of LCD TV panels returns to early 2020 levels, it’s expected that LG Display and Samsung Display will both go ahead with their plans to shutter production in favour of newer, more advanced display technologies such as OLED, QD-OLED, MicroLED and maybe even QNED.

LCD panel prices continued their upward uncharted trend. The 65” LCD panel could be representative of the industry as ASPs have been on a roller coaster, since the product reached volume production in Mar’15. After the in initial charge prices settled in at $245, by Jan.’18. By Oct.’19, ASPs hit a low of $160 down 53% and in Apr.’21, ASPs were $275, up 42%.

Semiconductor shortages plaguing the entire CE supply chain. For displays the shortages include Timing controllers (TCON) and drivers. Most suppliers are fabless, so they must compete for foundry capacity with many other products and face the same supply issues as other semi products, which pushes foundries to both raise prices and give priority to their largest customers and products where they derive the most profit.

Glass substrate prices, which historically decline, have been relatively stable, but recently, after a few mishaps and glass facilities, glass prices are rising, adding to the price of panel production.

Brands continue to hold onto aggressive CE targets, which gives panel producers, usually in the lesser bargaining position, almost free reign to raise prices faster than costs increase.

Chinese suppliers are using this situation as a chance to justify their aggressive LCD capacity expansion over the last few years and are raising panel prices to achieve margin goals set by provincial and local governments, which control the capital for expansion into OLED and LED based displays.

The increase in panel prices is unlikely to be offset by reductions in the cost of Mini LEDs anytime soon. Epistar will hike quotes for LED and MiniLED chips in second-quarter 2021 to reflect increases in material costs, according to company president Patrick Fan. Rising IT product prices have shown that clients would be willing to accept price hikes, Fan said, adding the hikes in the company"s products will be moderate. Epistar has annual MiniLED production capacity equivalent to one million 4-inch wafers, a level enough to meet demand in 2021, Fan indicated, and Epistar will not expand the capacity at the moment but will plan capacity expansion for long-term operation. Yield rates for MiniLED have risen to satisfactory levels and if MiniLED-backlit products sell well, MiniLED penetration in backlighting will rise with production cost declining, Fan noted. Demand for AlGaInP (red) LED chips has rebounded since second-half 2020 and the corresponding production capacity has been fully utilized, with the revenue proportion standing at below 40% at present, Fan said. The capacity utilization for blue-light LED chips is below 90% currently, Fan noted. Epistar and vertically-integrated LED maker Lextar Electronics jointly own Enostar. MiniLED backlighting is used for high-end and gaming notebooks, LCD TVs and automotive displays, Lextar chairman David Su indicated, adding the adoption is expected to extend to other product lines in second-half 2021. EnnoStar expects double-digit gross margin for first-quarter 2021 and aims to reach monthly break-even operation as soon as possible.

The large panel segment grew 11.9% m/m in terms of revenue and 8.5% in terms of shipments, while large panel ASPs grew 3.1%. On a y/y basis, revenue grew 56.6%, with shipments up 26.7% and ASP’s up 23.6%. While the y/y growth was impressive in March, the industry is still comparing against a period of declining panel prices near the onset of COVID-19, so we would expect y/y comparisons to remain unusually strong for the first half, while becoming progressively less abnormal as the year progresses.

On a regional basis Taiwan experienced the largest sequential increase at 20.9%, while Japan saw the largest increase on a quarterly basis, but Japan’s share of the LCD large panel market is miniscule compared to other regions. Samsung Display and LG Display have decreased their large panel capacity through plant sales or closings.

On a company basis, the table below looks at those panel suppliers that are primarily large panel producers, as a number of small panel producers also produce small quantities of large panels. This can make large panel performance for these types of producers very volatile, given that small changes in such numbers can lead to large percentage changes, but little impact on the industry as a whole. Companies excluded include:

Given the relatively unusual circumstances of last year, most of the y/y comparisons don’t give much new information, and the negative results from Samsung Display and Panda have more to do with the sale of LCD fabs than actual performance, with BOE and ChinaStar being the receivers of those fabs. Sharp had its best monthly revenue (Feb./Mar.) since mid-2014, and Chinese large panel producers HKC and CHOT saw their best quarters since inception. While capacity increases are embedded in some of the more positive monthly and quarterly results, higher utilization and large panel price increases would be the root for much of the gains

Large panel shipments did not see growth in 1Q, at least on a q/q basis (-1.8%), however looking at the 1Q 5 year q/q average for large panel shipment, which is -9.7%, the relatively small drop in large panel shipments in 1Q is unusually strong. Subsequent q/q growth will compare against higher averages as noted in the table below. Shortages in the display space have become more of a problem for large panel producers as the year has been progressing, and with relatively little foundry capacity increases (drivers, TCONs), and tight supply of glass and raw material price increases, we expect large panel price increases will be the only way large panel producers will see increasing revenue on a monthly or quarterly basis. There will be some capacity increase at Gen 7 and above fabs (+4.1%), but the bulk of any improvement will come from further panel price increases, against progressively stronger 2020 results, particularly in 2H, and higher 5 year averages.

We note that Samsung saw its leadership position drop to 2nd place in 4Q ’20 as Xiaomi pushed its focus up a bit to the premium category in India last year and offered large discounts during the 4Q holiday season, but Samsung’s broad mid-tier offerings seem to be appealing to an increasing number of customers on a regular basis. While not in the top 5, we believe Apple was in 6th place for the 2020 year, with the iPhone SE offering an appealing price point for more budget conscious buyers who still wanted the cache of an Apple product.

The price of LCD display panels for TVs is still falling in November and is on the verge of falling back to the level at which it initially rose two years ago (in June 2020). Liu Yushi, a senior analyst at CINNO Research, told China State Grid reporters that the wave of “falling tide” may last until June this year. For related panel companies, after the performance surge in the past year, they will face pressure in 2022.

LCD display panel prices for TVs will remain at a high level throughout 2021 due to the high base of 13 consecutive months of increase, although the price of LCD display panels peaked in June last year and began to decline rapidly. Thanks to this, under the tight demand related to panel enterprises last year achieved substantial profit growth.

According to China State Grid, the annual revenue growth of major LCD display panel manufacturers in China (Shentianma A, TCL Technology, Peking Oriental A, Caihong Shares, Longteng Optoelectronics, AU, Inolux Optoelectronics, Hanyu Color Crystal) in 2021 is basically above double digits, and the net profit growth is also very obvious. Some small and medium-sized enterprises directly turn losses into profits. Leading enterprises such as BOE and TCL Technology more than doubled their net profit.

Take BOE as an example. According to the 2021 financial report released by BOE A, BOE achieved annual revenue of 219.31 billion yuan, with a year-on-year growth of 61.79%; Net profit attributable to shareholders of listed companies reached 25.831 billion yuan, up 412.96% year on year. “The growth is mainly due to the overall high economic performance of the panel industry throughout the year, and the acquisition of the CLP Panda Nanjing and Chengdu lines,” said Xu Tao, chief electronics analyst at Citic Securities.

In his opinion, as BOE dynamically optimizes its product structure, and its flexible OLED continues to enter the supply chain of major customers, BOE‘s market share as the panel leader is expected to increase further and extend to the Internet of Things, which is optimistic about the company’s development in the medium and long term.

TCL explained that the major reasons for the significant year-on-year growth in revenue and profit were the significant year-on-year growth of the company’s semiconductor display business shipment area, the average price of major products and product profitability, and the optimization of the business mix and customer structure further enhanced the contribution of product revenue.

“There are two main reasons for the ideal performance of domestic display panel enterprises.” A color TV industry analyst believes that, on the one hand, under the effect of the epidemic, the demand for color TV and other electronic products surges, and the upstream raw materials are in shortage, which leads to the short supply of the panel industry, the price rises, and the corporate profits increase accordingly. In addition, as Samsung and LG, the two-panel giants, gradually withdrew from the LCD panel field, they put most of their energy and funds into the OLED(organic light-emitting diode) display panel industry, resulting in a serious shortage of LCD display panels, which objectively benefited China’s local LCD display panel manufacturers such as BOE and TCL China Star Optoelectronics.

Liu Yushi analyzed to reporters that relevant TV panel enterprises made outstanding achievements in 2021, and panel price rise is a very important contributing factor. In addition, three enterprises, such as BOE(BOE), CSOT(TCL China Star Optoelectronics) and HKC(Huike), accounted for 55% of the total shipments of LCD TV panels in 2021. It will be further raised to 60% in the first quarter of 2022. In other words, “simultaneous release of production capacity, expand market share, rising volume and price” is also one of the main reasons for the growth of these enterprises. However, entering the low demand in 2022, LCD TV panel prices continue to fall, and there is some uncertainty about whether the relevant panel companies can continue to grow.

According to Media data, in February this year, the monthly revenue of global large LCD panels has been a double decline of 6.80% month-on-month and 6.18% year-on-year, reaching $6.089 billion. Among them, TCL China Star and AU large-size LCD panel revenue maintained year-on-year growth, while BOE, Innolux, and LG large-size LCD panel monthly revenue decreased by 16.83%, 14.10%, and 5.51% respectively.

Throughout Q1, according to WitsView data, the average LCD TV panel price has been close to or below the average cost, and cash cost level, among which 32-inch LCD TV panel prices are 4.03% and 5.06% below cash cost, respectively; The prices of 43 and 65 inch LCD TV panels are only 0.46% and 3.42% higher than the cash cost, respectively.

The market decline trend is continuing, the reporter queried Omdia, WitsView, Sigmaintel(group intelligence consulting), Oviriwo, CINNO Research, and other institutions regarding the latest forecast data, the analysis results show that the price of the TV LCD panels is expected to continue to decline in April. According to CINNO Research, for example, prices for 32 -, 43 – and 55-inch LCD TV panels in April are expected to fall $1- $3 per screen from March to $37, $65, and $100, respectively. Prices of 65 – and 75-inch LCD TV panels will drop by $8 per screen to $152 and $242, respectively.

“In the face of weak overall demand, major end brands requested panel factories to reduce purchase volumes in March due to high inventory pressure, which led to the continued decline in panel prices in April.” Beijing Di Xian Information Consulting Co., LTD. Vice general manager Yi Xianjing so analysis said.

“Since 2021, international logistics capacity continues to be tight, international customers have a long delivery cycle, some orders in the second half of the year were transferred to the first half of the year, pushing up the panel price in the first half of the year but also overdraft the demand in the second half of the year, resulting in the panel price began to decline from June last year,” Liu Yush told reporters, and the situation between Russia and Ukraine has suddenly escalated this year. It also further affected the recovery of demand in Europe, thus prolonging the downward trend in prices. Based on the current situation, Liu predicted that the bottom of TV panel prices will come in June 2022, but the inflection point will be delayed if further factors affect global demand and lead to additional cuts by brands.

With the price of TV panels falling to the cash cost line, in Liu’s opinion, some overseas production capacity with old equipment and poor profitability will gradually cut production. The corresponding profits of mainland panel manufacturers will inevitably be affected. However, due to the advantages in scale and cost, there is no urgent need for mainland panel manufacturers to reduce the dynamic rate. It is estimated that Q2’s dynamic level is only 3%-4% lower than Q1’s. “We don’t have much room to switch production because the prices of IT panels are dropping rapidly.”

Ovirivo analysts also pointed out that the current TV panel factory shipment pressure and inventory pressure may increase. “In the first quarter, the production line activity rate is at a high level, and the panel factory has entered the stage of loss. If the capacity is not adjusted, the panel factory will face the pressure of further decline in panel prices and increased losses.”

In the first quarter of this year, the retail volume of China’s color TV market was 9.03 million units, down 8.8% year on year. Retail sales totaled 28 billion yuan, down 10.1 percent year on year. Under the situation of volume drop, the industry expects this year color TV manufacturers will also set off a new round of LCD display panel prices war.

SEOUL, Jan 26 (Reuters) - South Korea"s LG Display Co Ltd (034220.KS) on Wednesday reported a 30% drop in quarterly operating profit as a one-off cost related to profit-sharing plan and lower TV panel prices offset solid shipments of smaller screens for computers, laptops and smartphones.

During the quarter, prices of 55-inch liquid crystal display (LCD) panels for TV sets fell 37% from the previous quarter, market data from TrendForce"s WitsView showed.

Solid shipments of high-end LCD panels for notebooks and monitors, whose prices declined by less than LCD TV panel prices in 2021, as well as higher-margin OLED panels for smartphones and TVs, should support LG"s results this year, analysts said.

LG Display said its shipments of advanced organic light-emitting diode (OLED) panels jumped more than 70% in 2021 and the display maker reached break-even in its OLED business.

"However, back-to-office and corporate demand from gradually improving economies is expected to increase, so overall demand for such devices in 2022 is expected to remain similar to 2021."

According to media reports out of Asia, buyers of large lots of 32-inch open-cell LCD panels – mostly destined for television production – are paying around $54-$59 per panel. In some cases, even lower prices are available. This price is about 40% lower than the price of that panel one year ago.

One report noted that in just the first quarter of 2016, the price of a 42-inch LCD panel is now $115, fully 8% lower than at the end of December. The same situation exists in the PC market as well. One report noted that the price of a 15.6-inch LCD display, destined for a notebook PC, is now only $25.50 down 10% since the end of December.

While dropping panel prices can be good news for consumers, who are finding great deals on televisions and computers around the world – it is terrible news for the industry, as profits get pressured…or eliminated altogether. Most markets are reporting dramatic drops in television pricing – even on the step-up 4K Ultra HD televisions – on which many brands hoped to realize more profit on this latest video technology.

Although the LCD panel industry had expected an increase in 2016, it now appears that the best they can hope for us flat shipments. And even that dismal estimate may be optimistic. Industry insiders are now forecasting sales of 224 million panels globally – about the same level as 2015.

The global economic slowdown has caused a dramatic drop-off in television sales. Most manufacturers had targeted increased panel sales in developing markets. But as it has turned out, sales declines globally have offset whatever gains they’ve been able to make in these newer markets.

A report by the Nikkei points out that China’s BOE Technology Group, as well as other Chinese LCD panel makers, are ramping up production in this environment and are guilty of fueling a price war. IHS, a U.S. market research company, estimates that production capacity for panels 9.1-inches or larger will exceed demand by 14% this year. This amount is well beyond a more normal rate of 10% or less.