BOE is expected to accelerate its growth after the global production capacity is impacted by the epidemic

Due to the spread of the COVID-19 around the world, the safest epidemic prevention measure is to shut down and isolate. Therefore, the LCD panel industry around the world have uncertainties once again.           

At present, the TV panel capacity of BOE and TCL technology is about half of the global total capacity, but if not including the impact of the epidemic, about 30% of the TV panel capacity is in South Korea, and about 20% of the TV panel capacity is in Taiwan and Japan. Many LCD manufacturer of China also were affected by the COVID-19.         

 Taiwan was the first to synchronize with China in this COVID-19, and adopted relatively conservative regional isolation measures, so the impact on the lcd panel production is not too large. The main TV panel production capacity in Japan is Sharp. After being purchased by Mr. Guo, it will follow the pace of Taiwan's electronics industry, so the impact is relatively small. At the same time, sharp is actively preparing for the high-definition TV line of the sports.           

 However, the LCD TV panel production capacity in South Korea is planned to exit. In the end, only Samsung's commercial display panel production capacity will be produced in South Korea, so the epidemic may accelerate the exit of LCD TV panel production capacity of South Korean manufacturers.            

In fact, the epidemic in China has little impact on the TV panel production line, and the situation is similar from a global perspective. Except for the annual repair production line, the production is arranged production according to the normal scheduling rhythm.           

At present, the TV panel market is mainly affected by the module processing stage and the terminal market.           

As China's domestic TV market accounts for about a quarter of the global market, it is conservatively estimated that 7-9 million TV sets will be sold less in the first quarter.            But now the epidemic situation in China has been controlled basically, and compulsory isolation has been basically lifted in the three categories of areas, only some routine inspection and control prevention operations are being carried out; the second category of areas have also adopted the declaration system, which is also equivalent to lifting the compulsory isolation measures.           

TV is still the entertainment center of many families, and this trend will not change in three or five years. If 5G construction is accelerated, as the carrier of HD video, TV will only promote its consumption heat.           

Therefore, the market expects that the TV sales in the first quarter will subside and will be replenished in the golden week of Labour Day, so it has little impact on the TV sales throughout the year.           

Since the impact of market terminals and market front-end panels is only a few inventory adjustment fluctuations, the lcd industry's focus is more on the assembly and manufacturing of later modules.           

The LCD module capacity of South Korea is close to the epidemic center, so it is greatly affected, and affected by the isolation of the epidemic and transportation. In the next two quarters, South Korean manufacturers Samsung and LG may rely on the module capacity support of China. Moreover, the module supporting capacity of Samsung Suzhou is greatly affected by the fact that the upstream PCB supplier is located in the epidemic center of China. The module supporting capacity of LGD Guangzhou benefits from the fact that the whole industrial chain is basically not affected by the epidemic and can be basically guaranteed.     .      

Part of Taiwan's LCD TV panel module capacity is concentrated in Jiangsu Province, which is affected by the fact that the upstream PCB supplier is located in the epidemic center of China, so the supply is hard. Moreover, due to the relatively centralized procurement, PCB supply is not smooth, which also affects the release of the later module capacity in Taiwan Island.           

China's BOE, its module capacity is mainly matched near the panel plant, while Wuhan 10.5 generation line has just started commissioning, with little impact. The panel capacity and module capacity of Hefei have recovered, and the impact is not significant. If there is any impact, the module capacity of Suzhou’s BOE and the capacity of Chengdu and Chongqing will be affected. The resumption of construction in Chengdu and Chongqing is slower, but the impact is more on the capacity of the laptop panel.         

The production capacity of TV panels and modules in BOE Hefei, Beijing and Fuzhou recovered well, and the organizational production was unaffected by the epidemic.