Panel production stagnant "double tigers" merger unknown

from the panel "five Tigers" to "double tigers", the integration of LCD panel industry is still on the road.





"See the problems of the panel industry in the past few years, and there is hardly any new output." Some investors and financial institutions have expectations for mergers. April 11, Friends Tatsu Photoelectric general manager Peng in the 21st century Economic Report reporter interview, said that the group of Friends Tatsu photoelectric and Foxconn's combination of the news was sometimes mentioned, but the scale is only LCD panel enterprises in a number of competitiveness, "merger is not necessarily a good thing."





"Double Tigers" merger may not be good





China region in 2002 put forward "two trillion double star" program, for the local panel industry to provide strong policy support, LCD panel Industry rapid Development, market share for a while over Korea, ranked first in the world. top panel industry, formed by friends Tatsu Photoelectric, China Ying Tube, Guang-hui Electronics, Qi Mei Electronics, Han Yu, such as the composition of the so-called "five-tiger" pattern.





due to the overall loss of the last round of LCD industry, as well as the global financial crisis and other factors, LCD panel enterprises after a number of rounds of shuffling, including Guang-Hui electronics into Friends Tatsu photoelectric, Qi Mei Electronics was integrated into the group of Hon Hai Group, "Five-tiger" pattern by the group created, Friends of the photoelectric composition of "Panel double Tiger" Pattern.





at present, from the global LCD map, South Korea's LGD, Samsung market share in the first, second, the Chinese mainland to Beijing-Orient, huaxing photovoltaic as the representative of the new capacity of the continuous opening of the  Area LCD panel industry in the capacity of the encounter attack.





According to Dispalysearch Recent research data, the next two years about 70% of the world's LCD panel new capacity will be from mainland China. Peng also told reporters that in the past three years, LCD industry almost no new production capacity.





Peng said, "Some people want to merge and return to the world's largest capacity." ”





In February this year,  "Economic minister" Zhang confirmed that Hon Hai's chairman, Terry Gou, had asked him to discuss the Twin Tigers merger, saying that "the Ministry of Economy" was optimistic, but respected the wishes of both sides and would not intervene forcibly. Friend Tatsu photoelectric at that time on the external caliber is: for industrial integration with open attitude, but there is no specific plan.





"The present (merger) has not developed. Peng said to reporters, to say that the merger, friends Tatsu Photoelectric can be said to be the most voice, history has experienced two successful merger cases.





, the predecessor of the electronics Tatsu Acer technology, in September 2001 with the Union friend photoelectric merge renamed as Friends Tatsu photoelectric. 2006, friend Tatsu Photoelectric again acquired Guang-hui Electronics.





"These two mergers are successful mergers. "Peng said that the measure of success is a sign of whether to bring new value, as well as a complementary effect," after two mergers, the company has the production of complete large and small size panels of the generation line.





But he stressed that at present, the scale of the global LCD industry has been very large, only friends Tatsu photoelectric one of the capacity of 15% of the world, this industry is no longer the replacement of the past stage of growth, "now the panel industry's development model has shifted, the past scale of economic thinking may not be effective."





the scale of mainland panel





peng that in the color TV industry from the CRT to the plate transition, the LCD panel industry can enjoy the dividends of alternative growth, when the industry is a typical capital, technology-intensive industries, but now with the expansion of global capacity, has entered the era of cost competition.





"Last year, the company's production capacity did not expand, but revenue increased by 10%." Peng said that the LCD industry will then transition from alternative innovation to application innovation, simply increase the scale can not improve competitiveness, but to increase technology investment, from the volume of expansion to the development of quality.





Peng that the changes in the development model for the Chinese mainland LCD industry is also a hint.





Thanks to the support of government policy and the trend of global industrial transfer, China's LCD panel production has expanded rapidly. Up to now, Beijing-east Side plate production line (including under construction) has reached 7, TCL Group's huaxing Optoelectronics has also been planning and construction of the third panel production line. A survey by Npddisplaysearch, a market research firm, shows that China could add 16 new panel factories to production in the next three years.





for the expansion of the capacity of China's LCD panel factory, Peng said, first, the Continental panel production line mainly concentrated in the 8.5 generation line, and from the economic cutting point of view, it can cut the size of the limited, mainly 52, 48, 55 and other size products, and the market demand for more diverse products, such as 50 inches, 65 inch, only 6 generation line or 7.5 generation line can be cut out.





Second, the mainland production lines are more new, and friends Tatsu photoelectric panel production line to next year will be depreciated, relative to the cost of more competitive.





third, the current LCD panel industry's competitive advantage is not light by capacity expansion can bring, such as 4K, curved surface, high color gamut, technology and research and development requirements are high. Friends of Optoelectronics in the April 10-12th in Shenzhen, "China Electronic Information Expo (CITE 2014) on the first production of 42 inches to 65 inch UHD 4K Wide gamut surface LCD TV screen." Peng to reporters that 4K, curved surface, high color gamut, such as the original OLED product characteristics, but now that the company is taking the lead in these technologies, it can be said that the trend of OLED in the large-size TV-panel market has been postponed for at least a few years, "or that high cost OLED may have no market in this area".





"Other vendors can follow suit in these areas, but at least half a year or a few years from now." "Peng that the trend of consumer electronics is changing rapidly, a product life cycle may be half a year," terminal manufacturers can not afford.





Finally, Peng that, because of local government investment factors, the layout of Chinese mainland LCD panel is more dispersed, which is not conducive to improving the overall efficiency.





Tariff is a double-edged sword





with the increasing production capacity of LCD panels in China, including LCD panel factory and industry experts in different occasions to raise the import tariff of LCD panels, for domestic panel factory to win the development time.





This year, CPPCC members of the National Committee, Chinese Academy of Sciences Ouyang Zhongcan that the next five years China's tablet industry will still be in a crucial period, the need for more policy support, and suggested that the state will be the LCD panel tariff rate from 5% to 10%. Li, chairman of the National People's Congress and TCL Group (000100.SZ), also believes that it is significant to increase the protection of domestic flat panel display companies in Tariff policy, including: material tax exemption, VAT refund, and the import tariff of LCD panel from the current 5% to 8%-10%.





In this regard, Peng said that the increase in import tariffs on mainland China's panels have an early protection, but in the long run to increase competitiveness is not necessarily a good thing, "protection may lead to backwardness, there are many examples of this in history, on the contrary, only competition can induce people to find a way to survive





More importantly, Peng that the increase in import tariffs is a double-edged sword, from the point of view of the protection of the LCD panel factory is good, but from the end of the manufacturer and consumers point of view, is to increase the cost.





According to Peng revealed that the  Area panel industry is also through the "Cross-strait Flat Display Association" and the mainland related institutions to communicate, at the same time, the mainland's color TV brand manufacturers are also important information delivery pipeline.





Peng that, even if the tariffs are raised by 5%, the panel, which is imported by the mainland's terminal enterprises, will still be exported after being assembled into TVs, which will not be affected by tariff increases, " China's 130 million sets of TV production capacity in one year, of which 45 million units, and 90 million other export products and raise tariffs does not matter.