China‘s LED electronic display industry has strong anti-risk strength

Time:2023-02-20 Views:848

At the spring industry trend conference of 2022 global display industry held a few days ago, Liang Xinqing, executive vice president of the LCD branch of the China Optics and Optoelectronics Industry Association, said that China‘s new LED electronic display industry has the advantages of complete industrial chain and large application market. Although there are still many uncertainties in the epidemic, China‘s new display industry has been "turning crisis into opportunity".

The impact of the epidemic cannot be quantified, but confidence is the most important

Under the huge market pull, China‘s LED electronic display screen industry has accounted for about 50% of the global market share after more than 10 years of development, and has formed a very strong upstream industrial support in Chinese Mainland. A large part of the main raw materials are solved locally.

Liang Xinqing said that from the performance of fighting the epidemic, we can see that China‘s industrial chain has formed a relatively complete system and has the ability to fight risks.

In 2019, Chinese Mainland will become the largest region in the global industry, and many advantages are also emerging. For example, since the fourth quarter of 2019, the price of the global panel market has reversed; For another example, some flexible AMOLED production lines in China have been built in succession and have entered the ramp-up mass production stage. 2023 is a very critical period, and enterprises in Chinese Mainland could have "pursued success".

However, the sudden epidemic has restrained the factors that promote the growth of market demand. Liang Xinqing believes that the epidemic situation at this critical point is really a big blow to China‘s LED electronic display industry and a very big test. "The final loss and impact cannot be quantified at present, and there is indeed great uncertainty in the future," he said.

Liang Xinqing pointed out that enterprises in Chinese Mainland should make efforts from three aspects. First, we should maintain confidence. Confidence comes from the fact that the demand of the entire information society for display products will not change, and only more will not be less. Second, the upstream and downstream industrial chain and terminal application supporting facilities of China‘s LED electronic display industry are relatively complete. The epidemic has reduced face-to-face communication between people, but increased communication through network technology, which cannot be separated from display products. Therefore, enterprises should have the determination and goal to innovate, strengthen the coordination of the industrial chain, strengthen the application of innovation, and turn problems into opportunities. Third, the epidemic is global, and no country or region can escape it. However, as long as enterprises continue to innovate in technology and increase investment in research and development, the industry will always maintain the vitality of development.

"Key materials are out of supply"? non-existent

Some insiders believe that the recent "anti globalization" will lead to the shortage of key materials in China‘s LED electronic display industry. Liang Xinqing is not worried about this.

In recent years, the global display panel market has maintained a demand of about 200 million square meters every year, and the demand for TV and mobile phones has remained at about 200 million and 1.5 billion, respectively. Although there are fluctuations, the basic market will not change much.

"The huge capacity attracts global peers to make a large amount of investment in this region (China) to form a complete supply chain system. Leaving the industrial agglomeration area to invest and build factories in other places is a countertrend." Liang Xinqing analyzed.

In addition, many supporting materials in the LED electronic display industry are exclusive to the industry. If they leave the display industry, they will lose their use. Therefore, from the perspective of objective market forces, the concern about the so-called "cut-off of key materials" is redundant.

Liang Xinqing stressed that in recent years, enterprises in Chinese Mainland have formed very strong capabilities through their efforts in the market and gradually filled the gap in the industry. "Individual core and key materials may be restrained by some aspects, but the proportion will not be very large, and there will be filling in one after another."

To prevent disorderly investment

Due to the particularity of the industry, especially the module production line needs to keep running for 24 hours, the LED electronic display industry is one of the few industries in the epidemic that has not completely stopped production.

Liang Xinqing revealed that since May, China‘s LED electronic display enterprises have basically entered the stage of resuming production and recovery. "Although the market has been affected to some extent, it still has great potential."

As the global epidemic is still unclear, it is difficult to predict when, to what extent, and how much harm it will cause to the economy. Liang Xinqing said that the industry should make every effort to promote the market, stabilize the market and develop the market. Enterprises should make efforts to make up for the losses caused by the epidemic. Governments at all levels will also make every effort to support enterprises with certain market potential.

Liang Xinqing analyzed that the government would attach importance to the LED electronic display industry as an important industry to promote economic development after the epidemic. With the support of the government‘s macro policies, enterprises should continue to expand the market and strengthen research and development efforts.

At the same time, Liang Xinqing also warned the industry to prevent unqualified local or enterprise entities from entering the display industry regardless of market capacity and their own conditions, resulting in disorderly investment and low-level repetitive construction. "The national and local competent departments should strengthen macro guidance in this regard," he suggested.