Competition For Display Standard Enters Third Round As It Becomes 43-Inch…Chinese Businesses Are Feeling Very Confident

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Competition For Display Standard Enters Third Round As It Becomes 43-Inch…Chinese Businesses Are Feeling Very Confident

Jul 15, 2015

 

As average TV size surpasses 40-inch, competition for standard of large-sized display product faces a new situation. Third round of competition has begun as there are more companies that change to 43-inch (42.5-inch) this year.
Display companies until now competed for standard of product size considering product efficiency and demand from the market according to average size of TVs. First round started with a competition between 40-inch and 42-inch in 2005 because Samsung Display and LG Display invested in Gen 7 and Gen 7.5 respectively and put out 40-inch and 42-inch with the highest chamfer efficiency. 40-inch product that Samsung Display and Sharp produced became threshold for standard during that time.
Competition in second round became fierce as Taiwan’s Innolux strategically put out 39.5-inch through investment in Gen 6 in 2012 and competed against previous 40-inch. Innolux received a lot of attention because 39.5-inch’s chamfer efficiency was far superior to Samsung Display and Sharp’s Gen 7 40-inch as it was 93% compared to 86% of 40-inch.
As display businesses increased their investments in Gen 8.5 recently, competition for standard entered third round. Including LG Display, Taiwan’s AUO, China’s BOE, and CSOT are focusing on producing 42.5-inch displays at Gen 8.5 lines.
According to market investigative company called HIS, amount of 40-inch and 42-inch shipments were 8.9 million and 4.7 million respectively in first quarter or 2015. Amount of 43-inch shipments was 2.6 million.
 

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“Amount of 43-inch shipments will be greater than 42-inch starting from this year. Because Chinese companies are rapidly changing their plans to produce 43-inch, it is predicted that 43-inch will become a standard with them leading.” Director Park Jin Han of HIS predicted that 43-inch will soon become a standard due to Chinese companies.
LG Display is producing 10 42.5-inch products at Gen 8.5. AUO and CSOT are producing 8 42.5-inch along with 21.5-inch at Gen 8.5 by selecting Multi Model Glass (MMG) because they want to lower their production costs by decreasing area of boards that are being thrown away.
BOE is also producing 8 of them at Gen 8.5 through MMG technology and 18.5-inch at rest of its sections. It is expected that BOE’s competitiveness in production will be far superior hereafter because it can produce 18 42.5-inch all together at Gen 10.5.
Average size became more than 40-inch for the first time as average size of LCD TVs that were sold worldwide last year was 40.5-inch because preference for large-screen increased as supply of super-resolution TVs such as UHD TVs expanded. It is expected that it will continuously increase as it will be 41.6-inch this year and 42.5-inch in 2017.

■Efficiency per display sizes and trend of major production companies
▲Factories that produce each size of TVs is Gen 6 line (39-inch), Gen 6 line (39.5-inch), Gen 7 inch (40-inch), Gen 7.5 inch (42-inch), and Gen 8.5 inch (42.5-inch (43-inch)).
▲ Number of cuttings for each size of TVs is 6 (39-inch), 6 (39.5-inch), 8 (40-inch), 8 (40-inch), and 10 (42.5-inch (43-inch)).
▲Chamfer efficiency for each size of TVs is 91% (39-inch), 93% (39.5-inch), 86% (40-inch), 89% (42-inch), and 91% (42.5-inch (43-inch)).
▲ Major production companies for each size of TVs is Innolux and AUO (39-inch), Innolux (39.5-inch), Samsung Display and Sharp (40-inch), LG Display, AUO, and Innolux (42-inch), and LG Display, AUO, BOE, and CSOT (42.5-inch (43-inch)).

Staff Reporter Sung, Hyeonhee | sunghh@etnews.com

 

 

 

 

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