Chinese firms are in 2015 expected to produce 24.5 percent of the total share of global LCD panels used in PCs and TVs from fifth-generation (5G), or more advanced, factories.
TrendForce Corp (集邦科技) has forecast a big jump for China up from its 13.8 percent share this year, amid the country’s persistent capacity expansion.
China would catch up with Taiwan, which would see its global share slip to 28.1 percent from this year’s 32.1 percent, according to WitsView, a LCD research team of Trendforce.
South Korea was likely to see its market share drop to 39.4 percent in 2015, from this year’s 45 percent, WitsView said.
In China, three 8.5-generation production lines are expected to start operating next year. Production from Samsung Display Corp, BOE Technology Group Co (京東方) and LG Display Co is expected to help boost capacity in China for PC and TV screens by 3.8 percent annually to 202.2 million square meters, WitsView predicted.
“China’s capacity expansion will have significant impact on smaller Taiwanese companies in the LCD supply chain because of weak growth on the demand side,” WitsView analyst Boyce Fan (范博毓) said in a report released on Monday. “Furthermore, companies with LCD plants in China will have a pricing advantage, if China decides to raise import tariffs.”
Taiwanese LCD panel makers do not operate any 5G factories in China at the moment and are expected to see their 5G capacities shrink by 2.1 percent to 194.9 million square meters this year from last year, Fan said.
Taiwan’s AU Optronics Corp (AUO, 友達光電) and Innolux Corp (群創光電) do not have plans to expand their capacity as they intend to primarily spend capital on developing new technologies for higher-definition displays and touch panels.
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