Shenzhen Enrich Electronics Co.,Ltd

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Company News >> Panel prices continue to fall, the pressure on the upstream industry chain is huge

Although China's panel industry has embarked on economies of scale, this is only a breakthrough in quantity, and upstream and downstream industries have not been established.

 

At present, liquid crystal materials include various membrane materials, and Chinese panel companies mainly purchase from abroad. As panel prices continue to drop, upstream companies feel pressure to survive.

 

BenQ Materials is a global manufacturer of professional optical film and polarizer materials, and 90% of its revenue comes from polarizing plates for important parts of LCD. However, panel prices continued to fall, and BenQ materials were also affected. Last year, the stock price rose 34%, but this year's stock price fell 5.3%. It is reported that BenQ Materials has contacted a Japanese auto parts manufacturer to discuss the supply of parts for rechargeable batteries.

 

The mature upstream enterprises are still like this. It can be seen that the panel prices are lower, the profits of upstream enterprises are gradually diluting, and the development of new upstream industries will be very difficult.

 

The panel industry is an integrated industry. The upstream and downstream links cannot be only one strong link, otherwise there will be risks subject to people.

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