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keyword:Julian Lee10 result(s)

Press Releases
Chinese Polarizer Manufacturers to Occupy More Than 40% of Global Production Capacity as Market Shows Oversupply in 2020, Says TrendForce

2020/07/21

Display

The display panel industry is expected to see limited growth in large-sized panel input area in 2020 due to the COVID-19 pandemic’s impact and the continued reduction of LCD production capacity in Korea, according to TrendForce’s latest investigations Even so, in 2020, polarizer manufacturers will be able to start mass production with two additional 2,500mm production lines, one added in 1H20 and the other one in 2H20 Compared to 2019, therefore, the polarizer industry is expected to be in a state of oversupply, with supply exceeding demand by about 123% China is projected to possess over 40% of the global polarizer production capacity as Ningbo Shanshan acquires LG Chem’s polarizer business TrendForce indicate that, prior to the upcoming sale to Ningbo Shanshan, LG Chem’s polarizer division leads the market by controlling 25% of the global polarizer production capacity Nitto Denko and Sumitomo Chemical are tied for second place, mainly because Sumitomo was able to raise its capacity share to 21%, on par with Nitto, by acquiring Japan-based Sanritz through purchasing its stocks On the other hand, China’s display panel industry ranks first globally in terms of both production capacity and shipment As such, China is likely to place top priority on developing domestic manufacturing operations for key display components Following Shanshan’s acquisition of LC Chem’s polarizer business, Chinese polarizer manufacturers, including Sapo, Sunnypol, and CMMT, among others, are expected to collectively account for more than 40% of the global polarizer production capacity for the first time, signaling the Chinese polarizer industry’s continued global expansion China’s key to sustaining its advantage in the industry lies in controlling key thin film R&D activities However, the most important upstream polarizer components, which are retardation films and protective films, including those made from PVA, PMMA, or COP materials, are mainly supplied by Japanese and Korean manufacturers If Ningbo Shanshan merely takes over LG Chem’s existing production lines and clients, the Chinese company will still face enormous operational pressures in today’s hypercompetitive large-sized LCD polarizer market For Shanshan to secure its place in the industry, it must accelerate its strategies regarding other polarizer-related segments, first by ensuring its thin-thin R&D momentum, whether through technology transfer or through patent licensing Only by doing so is the Chinese polarizer industry likely to expand its advantages in production capacity

Press Releases
Panel Quotes and Manufacturer Revenues May Stabilize in 2Q20 Thanks to Rebounding Panel Demand, Says TrendForce

2020/06/01

Display

According to the latest investigations by the WitsView research division of TrendForce, as panel demand begins to rebound in 2Q20, panel quotes are expected to stabilize as a result Therefore, panel makers are projected to see improved revenues in spite of the limited magnitude of cost reduction for upstream panel components in 2Q20 TrendForce indicates that TV panel prices underwent a significant wave of rebound in 1Q20, but the onset of COVID-19 led to disappointing shipment performances afterwards In addition to declining revenues, panel makers’ operating cost per square meter increased due to their declining panel shipment by area As a result, several panel makers saw QoQ declines in their operating margins in 1Q20 Starting from early 2Q20, IT brands gradually increased their panel orders to meet the rising demand from WFH and distance education, subsequently driving up a strong demand for IT panels As Europe and the US reopen economic activities later on in 2Q20, TV brands have also begun replenishing their inventories, steadily raising the overall demand for panels In turn, upstream panel component suppliers were able to limit the degree of QoQ price drops for components in 2Q20 For instance, glass substrate and polarizer prices fell by under 15%, while DDI prices dropped by about 1% only The minor drop in DDI prices took place mainly because 8-inch wafer fabs’ 01Xµm process node capacities were at maximum capacity utilization, in turn crowding out the production capacity for driver ICs and resulting in a tight DDI and PMIC supply situation Although the magnitude of cost reductions from components is limited, as panel makers post QoQ increases in their panel shipment by area, they are expected to lower their operating cost per square meter, meaning panel makers may still be able to lower their cash costs TrendForce forecasts a 25-28% decrease QoQ in TV panel cash costs and a 29-32% decrease QoQ in IT panel cash costs in 2Q20 With regards to 65-inch TV panels, their average cash costs may fall to as low as US$160, which is close to their quoted levels In the post-COVID era, adjusting product mixes and preparing for new business models will be keys to Taiwanese panel makers’ survival As Korean panel makers gradually reduce their LCD production capacities, and Chinese panel makers finish their investments in large-sized panel fabs, the panel market may potentially see a drastic transformation Given Taiwanese panel makers’ inferior production capacity relative to their Chinese counterparts, and the fact that the latter are quickly closing in on the former in terms of technology, Taiwanese panel makers will need to overhaul their product mix and business models Furthermore, since their TV panels are not cost-competitive compared to Chinese ones, Taiwanese panel makers may instead allocate their small-sized panel fabs into R&D for new technology and increase their output of industrial automation, medical, automotive, and public display panels, to be strategically adjusted going forward On the other hand, these panel makers can allocate their Gen 6 and Gen 75 fabs for manufacturing IT products In order to better adjust their IT product mixes, Taiwanese panel makers need to expand their production capacity for panels with wide viewing angles and increase their CAPEX in equipment for photo-alignment and thin glass substrates In an era of massive IoT deployment, the display screen remains a crucial interface for communicating data, but the display industry is expected to move towards an ecosystem of low quantity and high variety, which applies to panels including Mini LED/Micro LED, video wall panels, automotive display panels, specialized medical and industrial-use display panels, among others, meaning it is increasingly difficult for panel makers to profit from economies of scale, which had been the industry’s traditional business model As such, Innolux and AUO have recently spun off their niche business units, which subsequently became independent companies specializing in sales and design while looking for new sources of venture capital in the capital market This move allows Innolux and AUO to focus on production and manufacturing, as well as on improving their existing business models

Press Releases
As Competitiveness of High-end TV with Mini LED Backlighting Rises, Panel Manufacturers Rush to Develop Active Matrix Technology, Says TrendForce

2019/12/30

LED / Display / Consumer Electronics

Mini LED backlighting represents a significant upgrade in display technology and is becoming more and more cost-competitive Active matrix products are the key to increasing Mini LED presence in the high-end TV segment The increase in die bonding efficiency, the decrease in Mini LED chip cost, and the historical low of open cell prices all contributed to the significantly lowered costs of displays utilizing Mini LED backlighting According to the New Display Technology Cost Analysis quarterly report from the WitsView research division of TrendForce, Mini LED backlighting has significantly lowered the cost of display modules used in 65-inch 4K TVs These display modules are estimated to see approximately 5-10% cost reductions compared to 2018 costs This is expected to accelerate the widespread adoption of Mini LED TrendForce assistant research manager Julian Lee indicates that the two-year development period, from the 2H17 emergence of Mini LED technology to its current commercialization, is much more efficient than the longer developmental periods of past display technologies As Mini LED backlighting is based on the traditional structure of LCD panels, it pushes direct-lit backlighting to its technological limits and represents a significant upgrade for current backlight technology With the 4Q19 North American release of TCL’s 65-inch and 75-inch TVs featuring Mini LED backlighting, consumers are offered a new choice in the high-end TV segment Active matrix (AM) products have the potential to increase the technology penetration of Mini LED backlighting in the high-end TV segment Regarding the cost of different technologies used in 65-inch UHD 4K TV, the total cost of high-end display modules with edge-lit backlights sits at about US$350, while passive matrix (PM) displays with Mini LED backlights, consisting of around 16,000 LED chips, costs between $650-690 On the other hand, the module cost of dual cell TV released by Hisense this year is estimated at $630 Although the processing cost of Mini LED TV is still slightly high, Mini LED TVs are starting to be cost-competitive in the market According to TrendForce, most TVs with Mini LED backlighting that are mass produced this year are PM type However, as the number of backlighting zones increases, the number of LED drivers required increases as well; in turn, this raises the size of LED driver boards, which further raises the processing cost of PM TV Conversely, AM displays with Mini LED backlighting are superior to PM displays, as the number of backlighting zones increases, both in terms of cost competitiveness and in terms of specifications, which come close to rivaling OLED As a result, panel manufacturers such as Innolux, AUO, BOE, and CSOT are actively developing AM products, which are key to increasing the share of Mini LED backlighting in the high-end TV market segment

Press Releases
2019 Shipment of Flat-Panel Display Driver IC Exhibits Negative Growth Under Influence of Reduced Panel Production, Says TrendForce

2019/10/29

Consumer Electronics / Display / Semiconductors

According to the latest analysis from the WitsView research division of TrendForce, reduced panel shipment is causing the demand for flat-panel display driver IC to undergo a corresponding decline The 2019 YoY growth for total adoption is projected to be -32%, which marks the first instance of negative growth in recent years The space for shipment growth in 2020 is likely also limited Julian Lee, assistant research manager at TrendForce, indicates that the oversupply of panels has reached a climax this year as Gen 105 plants begin mass production In addition, the US-China trade war destabilizes the industry and exacerbates the oversupply problem by inducing a weak demand for consumer electronics As panel prices drop below cash costs, panel makers respond by massively scaling back panel production and thus impacting the demand of driver IC The latest figures suggest that total shipment of driver IC in 2019 sits at approximately 776 billion units As GOA technology penetration rises, potential for driver IC growth in 2020 becomes limited The injection of new production capacities in 2020, the implication for more panel shipments, and the trend towards higher resolution for large-sized display applications are offset by several factors leading to a stunted driver IC growth These factors include the ever-increasing popularity of narrow bezels, Gate-on-Array (GOA) integration into large-sized displays, and the corresponding decrease in Gate IC adoption Possible factors that stimulate driver IC demand consist of growths in shipment of automotive display panels and wearable devices TrendForce projects the 2020 growth rate of total driver IC shipment to be a mere 13%

Press Releases
Polarizer Supply the Tightest in Four Years, Hopefully to Relax as China Ramps Up Production Capacity in 2020, Says TrendForce

2019/05/13

Display

According to the newest observations by  WitsView  , a division of  TrendForce  , China's high-generation panel manufacturers are expanding at an alarming rate Additionally, average TV sizes continued to expand, and production capacities of super-wide 2500mm substrates that may be economically cut to 65 inches and 75 inches for polarizer suppliers were not ramped up in time, causing polarizer supply to tighten this year The glut ratio dove under 5% for the first time in four years and came to a mere 33%   Polarizers in Low Supply, Raising the Bar in Procurement and Price Negotiations for Panel Manufacturers TrendForce Assistant Research Manager Julian Lee points out that, although this year saw the addition of LG Chemical's wide 1490mm panel line at its Nanjing plant, this was merely a change in production base and not an increase in production capacity Kunshan Cheng Mei Materials' super -wide 2500mm production line, set to begin mass production this year-end, is expected to enter full swing in 2H20 Yet looking at the newly added panel production capacities for this year, we already see CSOT's Gen 11 line and HKC's Gen 86 line beginning mass production in 1H, and Sharp's Gen 105 line in Guangzhou beginning in 2H An imbalance has occurred in polarizers' supply/demand structure, yet the total supply area still remains larger than that of demand Polarizer manufacturers have been increasingly replacing TAC films with PMMA/PET films and COP films, yet non-TAC films still form the supply minority, its capacity expanding but slowly in the past few years They've also failed to catch up with high- generation panel manufacturers in production capacity, causing polarizer supply to tighten somewhat this year Panel manufacturers may even face situations such as unmet emergency orders or delayed delivery schedules, but they won't be severe enough to affect panel shipments Nevertheless, many TV panel prices are hovering just above cash costs, whereas polarizer prices refuse to drop The increased difficulty in negotiations remains to be the largest impact on panel suppliers from these events   Top Three Polarizer Vendors Combined Comprise 65% of Production Capacity; China's Vendors to Rise in 2020 According to TrendForce's calculations, the total effective polarizer production capacity area for the whole 2019 year is projected to stand at 566 million square meters, while the top three suppliers—LG Chemical, Nitto Denko and Sumitomo Chemical—hold a combined market share of 65% , and are not going anywhere anytime soon Samsung SDI is ranked at 4th place and takes up 9% of global capacity; Taiwan manufacturers such as Cheng Mei Materials, BenQ Materials and Optimax hold a combined share of 15%; China Manufacturers SAPO, Sunnypol and Sheng Bao Lai take up 8% All other suppliers make up the remaining 3% China manufacturers are predicted to rise significantly in influence beginning in 2020 If Hangzhou Jinjiang Group's SAPO and Kunshan Cheng Mei Materials both open up their 250mm production lines by then, China's polarizer providers will form a double digit share of global production capacity for the first time in history, arriving at 11%  

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