FPD industry originated in US in 1960s and was introduced to China at the end of 1990s. It then became flourishing in China and the development continues to this day. In 1998, Jilin Caijing built the first TFT-LCD first generation production line in China; now, Shanghai Video & Audio Electronics Co., Ltd. and Beijing Orient Electronics Group Co., Ltd. achieved scale production of the fifth generation production lines, which means the TFT-LCD industry in China mainland has achieved great progress during the period.
It has become a widely acknowledged fact that the making of LCD is moving to China; companies in Japan, Korea and China Taiwan all adjust their strategies to cope with the new situation. Along with the popularization of TN/STN panel and middle and small-size TFT panel products in China mainland, Japanese and Korean companies lost their original advantages in these markets and retreated from the low-end market, turning to high-end market, ready for the competition in large-size panel market. Samsung was the first to construct the seventh generation production line, while Sharp started the eighth generation production line. LPL as well as AU Optronics and Chi Mei Optoelectronics from Taiwan also followed suit.
In China, many TFT-LCD projects are planned, proposed or under construction, including the sixth generation production line of Beijing Orient Electronics Group, the sixth generation production line of Shanghai Video & Audio Electronics, the fifth generation plant of Infovision Optoelectronics (Kunshan) Co., Ltd. and the fifth generation production line of Shenzhen Tianma; Shenzhen JuLong Optoelectronics was established, Taiwan Chi Mei Optoelectronics is planning to construct the seventh generation production line in Guangdong Province, US Corning decide to build its new plant in Beijing. The industrial construction of TFT-LCD in China mainland is on its full wings. At the same time, the upstream raw material manufacturing industry related to TFT-LCD is also flourishing, including Ancai, a glass substrate manufacturing plant that is under construction, and Taiwan manufacturers built many LCM plants. The TFT-LCD industry grows at a breathtaking speed in China mainland, forming three industry clusters around the Yangtze River Delta, Pearl River Delta and the region around the Bohai, ranking the fourth in strength in the world. But, the LCD industry chain in China mainland is far from complete and the common issue facing the entire industry is how to create industry cluster focusing on panel industry.
The rising of China FPD market provides an equal opportunity for both Chinese companies and multi-national companies, especially for Asian manufacturers. For further development of their TFT-LCD industry, Japan, Korea, and China Taiwan will surely explore the market in China mainland. Those who can make it into China mainland earlier will lead in this market in the future. Samsung clearly stated that its future depended on China, while Sharp set up its plan to develop Chinese market in 2004 by advocating a “three-year strategy leading with LCD”. While at the same time, since TFT-LCD industry requires high technology and high investment, cooperation and acquisition become the keynote. Beijing Orient Electronics Group cooperates with Korean Hyundai; Shanghai Video & Audio Electronics cooperates with NEC; four complete machine manufacturers jointly founded JuLong Optoelectronics; Samsung cooperates with Sony, LG cooperates with Philips; Hitachi, Panasonic and Toshiba invested and jointly founded IPS Alpha Technology; Fujutsu sold its LCD panel division to Sharp; AU Optronics purchased Quanta Display Inc., which is followed by a wave of acquisition among Taiwan panel manufacturers, so as to improve their competitiveness. In Japan, Korea and Taiwan, the industrial development is away from the initial blind expansion and on the reasonable track of scientific planning and sustainable development.
The growth of LCD industry in China can only be achieved through international cooperation and since China has already lagged behind, it is both wise and necessary to learn from Japan, Korea and Taiwan, and to seek cooperation with them. The LCD industry in China mainland needs global capital and technologies, while overseas manufacturers need local support for exploring Chinese market.
China LCD industrial growth can only be achieved through a foresighted general arrangement and technological development. The FPD market promotes the rapid growth of LCD industry in China, whose further development shall also following the direction of market principles. Currently, FPD market is rising; most mainland panel manufacturers focus on the LCD panel products for PC and pay less attention to LCD TV panel products with more potential in future. As for Chinese manufacturers intending to compete for LCD TV panel market, the fifth generation production lines can no longer meet the requirements and the minimum condition for further survival in the market is at least the sixth or even the seventh generation production line. There are a great many of downstream brand manufacturers in China mainland that have great interest in large-size LCD TV, accordingly, the supply of panel products becomes a difficult problem.
The competition in the field of TFT-LCD is actually a competition of industrial chain; the general competition power can only be improved by resource integration through such means of strategic alliance, technological cooperation, investment and participating in each other's business by shares. Therefore, it is an urgent task to first develop the weaker links of upstream and middle stream, while at the same time to bring along the demand through rising complete machine market of TV, display and mobile phones, then to form strategic alliance with domestic color TV manufacturers to jointly develop LCD-TV market in China.
In addition, the growth of the industry requires a joint effort to promote technological development. Facing the competition with new display technologies including plasma panel and OLED, a continuous innovation of technologies is the only way keeping the industry in a leading position.
China government attached special importance to the LCD industry and its policies focus on the improvement of STN-LCD production scale, the promotion of TFT-LCD technology, the cultivation of independent technologies through introducing foreign scale production technologies, the building of TFT-LCD production line, the promotion of supporting facilities, the increase of localization of the raw materials for STN-LCD and TFT-LCD.
Supported by the Department of Electronics and Information Product, Ministry of Information Industry, China Video Industry Association and relevant organizations in China mainland, Hong Kong, Japan, Korea and Taiwan, we are to organize Asian LCD Industry Summit 2006 (Shanghai) from 25 to 26 November 2006 during the session of the 68th China Electronics Fair (CEF). Asian LCD authorities will gather to discuss the future development trend of LCD industry, to release the latest LCD technologies and to integrate the entire industry chain from complete machine down to panel, module, components, materials, distribution channel.
Asian LCD Industry Summit 2006 (Shanghai) is jointly organized by experienced China Electronic Appliance Corporation and well-established Nikkei Business Publications, Inc. We now sincerely invite you to participate in Asian LCD Industry Summit 2006 (Shanghai).
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