BOE will become the largest manufacturer of flat panel displays in the world in 2019

5 Juni 2019, 06:34:08

BOE will become the largest manufacturer of flat panel displays in the world in 2019IHS Markit has announced that China-based BOE will become the world's largest manufacturer of flat panel displays (FPD) for 2019. This is a precedent as LG has been removed from the top position for the first time. The research agency predicts 18% of the FPD production capacity to go to BOE. It will be closely followed by LG with 17%. Innolux is third with 14%. Samsung follows with 12% and AUO is fifth with 11%. The remaining 28% of the total production capacity is distributed among other small players in the market.

By 2023, the companies' FPD production capacity shares will be as follows: 21% for BOE, 16% for China Star, 12% for LG, 9% for Innolux and 8% for AUO. Apparently, Samsung will leave the top five in 4 four years opening space for a new player - China Star.

In 2019, BOE will expand FPD production capacity to more than 59 million square meters as it ramps up production at its B9 Gen 10.5 LCD factory and its B11 Gen 6 flexible AMOLED fab. The company has plans for more LCD and AMOLED factories to reach more than 78 million sq.m. by 2023. China will have five Gen 10.5 factories in full production by 2023, which will yield 62% of the worldwide FPD capacity - that's almost four times as much as any other region.

"Chinese companies originally focused on assembling modules and sets, but over time they've climbed the display value chain to full LCD production - and now they’re aggressively pursuing OLED manufacturing," said Charles Annis, senior director at IHS Markit. "BOE, for example, produces high volumes of almost every size and type of LCD and is shipping millions of flexible AMOLED smartphone panels monthly from its B7 Chengdu factory. On top of that, the company is either producing or has plans to pursue alternative technologies, such as OLED on silicon, electrophoretic displays (EPDs), white OLED (WOLED) and inkjet-printed OLED TVs and augmented reality/virtual reality displays. BOE’s goal is to lead not only in display production but also in technology."

Obviously, major players such as Samsung and LG find it hard to compete with this as long as it concerns high volumes, so for quite some time they've been focusing on unique and higher-end applications. More specifically, they focus on AMOLED panels. Samsung holds a 70% share in mobile AMOLED capacity and will produce 90% in 2019 of all non-TV applications. By 2023, its share of AMOLED capacity is expected to be 43%. For comparison, the current BOE capacity if 13% and will rise to 21% by 2023. As long as it concerns LG, this is the only manufacturer of OLED TVs in the world and there's no other manufacturer that will commercialize its technologies in the field before 2021 at the earliest.

"Despite still playing catch up in some advanced FPD technologies, China's and BOE's dominant position in the FPD industry is already solidified," Annis said. "At this point, not even politics and severe trade friction between the U.S. and China are likely to alter this fact." Quelle

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