The phase-out phase of the LCD liquid crystal panel industry continues, especially for small and medium-sized LCD liquid crystal panels. Huaying announced the liquidation a few days ago. Japanese panel factory JDI must also rely on foreign aid to survive. Even the South Korean panel maker LGD cannot lose money. Intentionally fade out of the small and medium-sized LCD panel business. The market concentration of small and medium LCD panels has increased, leaving only Samsung, BOE and Tianma to dominate the market.
The production capacity of LTPS panels and AMOLED panels in mainland China, as well as the smartphone market entering the platform period, increased brand market concentration, and LCD panel factories' bargaining power declined, resulting in a sharp drop in small and medium-sized panel prices last year. Last year, the price of mobile phone panels fell by more than 20%. In the first half of this year, the decline in mobile phone panels was still as high as double digits. Small and medium-sized LCD panel factories have suffered long-term losses, and there has been a wave of withdrawals this year.
At the end of last year, Huaying broke out in a financial crisis. Although it claimed to be reorganized, it was difficult to reverse its long-term development prospects due to poor physical fitness. Become the first export of this wave of LCD panel factories.
JDI’s customers are concentrated in Apple, but in the past two years, Apple has changed its strategy and shifted its flagship aircraft to AMOLED panels, making it impossible for JDI, which has been losing money for many years, to survive and seeking external financing. JDI’s total assets are 410.5 billion yen and liabilities are 487.7 billion yen. It is already insolvent, but the Bank of Japan consortium has extended JDI’s financing line to the end of this year, giving JDI a breathing opportunity. However, after TPK-KY Huanhong announced its withdrawal from the JDI investment case, Harvest Fund also announced its withdrawal a few days ago. It is worthwhile to observe whether external funds can be rescued in real time.
LGD has always been Apple's main panel supplier, but Apple's switch to AMOLED and hundreds of billions of billions in investment in AMOLED panels have also overwhelmed LGD. The increase in losses in the first half of this year not only caused an internal staff earthquake. But it also decided to fade out the supply chain of small and medium-sized LCD panels and Apple.
