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Company News >> Too "volume", LCD panel overcapacity is serious! These LCD factories will be transformed to transfer production
 During the 1990s, the global display industry in liquid crystal display LCD, plasma display PDP and field emission display FED and other technologies booming background set off a technological change, the traditional CRT color tube technology in liquid crystal display technology under the decisive attack nearly completely disappeared in the market, and become a historical inscription.
However, in the display industry on top of the fast track of development, panel manufacturers seem to be too ferocious expansion efforts, resulting in the global LCD panel production capacity oversupply situation, LCD panel production capacity has no more expansion needs.
As of today, China's mainland LCD panel production line has nearly 40, the word "volume" elaborated to the extreme. 2022, according to Lotto data show that the total annual shipments of mainland China panel factory amounted to 169 million pieces, an increase of 5.7%, accounting for 66.9%.
In the face of such a huge production capacity, coupled with the scale and cost of the double blow, in the LCD market in the past "three countries and four places" competition, South Korea has almost completely withdrawn from the LCD manufacturing business, Japan is left with only one LCD panel factory JDI, and Taiwan has also begun the transformation of its panel factories to adjust production.
Recently, in Touch Taiwan intelligent display exhibition, group photoelectric aspects of the industry boom bottom out the news of plant closure to make a statement, the chairman of Hong Jin Yang said, a quarter of the most improved demand for TV panels, but notebook panel prices have not yet improved, for this reason will be two LCD panel factory for the transformation of production capacity, micro LED is one of the transformation options.
Hong Jin Yang pointed out that the current consumer electronics products have reached saturation, the supply of components than the competitiveness of the product, must be considered as a long-term sustainable competitiveness. The 5.5 generation line (Fab4 factory) has been confirmed to readjust the production capacity and transfer the products to other factory lines to improve the production efficiency.
 There are three Gen 5 plants, one for Gen 5.5 and one for Gen 5.5.
Grouptron also said that in order to focus on long-term competitiveness, it will not restart the production line because of the accelerated recovery of the TV panel market, and will examine whether the factory is suitable for the production of the product, and if not, it will not be forced to earn this cash flow. At the same time, Gunther also pointed out that at this stage, the sales volume of large-size TV panels has increased, and the price has improved the most, and the most obvious is the small and medium size below 40 inches.
As for the cooperation with India in building panel factories, CCTF said it has already signed a contract with its partner Vedanta, and is expected to start the follow-up plan after the government agrees to subsidize the manufacturer by June this year. It is reported that Vedanta Group has already sent its employees to Taiwan for training and technology transfer.
Meanwhile, AUO CEO and General Manager Fu-Jen Ko said that the capacity of AUO's Gen 5 plant in Longtan will be flexibly adjusted and the future production of niche products may shift to micro LED and automotive products, while the existing notebook panel capacity will be moved to other high generation production lines for production.

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