© samsung Analysis | April 02, 2020
As Samsung Display exits the LCD market a major reshuffle is expected
According to the latest investigations by the WitsView research division of TrendForce, the oversupply of TV panels in 2019 resulted in a major price drop. As such, panel manufacturers hoped to utilise their excess capacity in 2020 through increasing their production of monitor panels, with Samsung Display (SDC) having the most extensive plans.
However, given the recent spread of the COVID-19 pandemic, the market has adopted a pessimistic outlook regarding end device demand. The latest news indicates that SDC has informed its clients that it will exit the LCD market by the end of the year. This news is expected to lead to a major reshuffle in the monitor panel market. TrendForce Research Manager Jeff Yang indicates that SDC is currently undergoing the difficult period of transitioning its TV panel production from LCD to QD-OLED. Owing to its preexisting technical advantage in curved monitor panel production, Samsung was confident in achieving increased presence in the curved monitor market. Samsung’s production plans for monitor panels were previously as follows: SDC would produce IPS panels at its Gen 7 fab and curved VA panels at its Gen 8.5 fab in Korea. It also intended to gradually transfer its VA production to the Gen 8.5 fab located in Suzhou, China in 2H20. This move was intended to allow Samsung to enjoy tax cuts from domestic sales to the Chinese market, where curved panels generally see higher popularity than in the European or U.S. markets. SDC shuttered its L7-1 Gen 7 fab as early as 2017 and converted the fab into a production line for smartphone OLED panels, which are more profitable. SDC currently commands very limited presence in the IPS monitor panel market, in which it holds a mere 9% share. The company’s decision to close L7-2, another one of its Gen 7 fabs, to make room for additional smartphone OLED panel production therefore makes sense from an operational perspective. Conversely, SDC’s 35% share in the VA panel market and more than 70% share in the curved panel market establish it as the undisputed leader in those markets. As well, it holds pole positions in high-curvature (about 1000R) panel technology and yield. Before it fully transitions to QD-OLED production within the next two years, SDC is unlikely to struggle with maintaining its current leadership in VA panels, curved panels, and high-curvature panels. The company would be premature to abandon these profitable markets at the current stage. From the perspective of supply and demand, the IPS panel market is currently facing excess supplies. Aside from the two major suppliers LGD and BOE, Taiwanese manufacturers are also expanding their production capacities through equipment conversion. Furthermore, HKC’s Mianyang fab will commence mass production this year. SDC’s exodus from the LCD market is therefore projected to somewhat ameliorate the problem of IPS panel oversupply. On the other hand, after SDC halts its production of curved VA panels, AUO and CSOT will become the sole remaining suppliers in the curved VA panel market, which is projected to exhibit a tight supply, in turn benefitting HKC, whose plans include mass producing curved VA panels at its Changsha fab next year. TrendForce initially forecasted an out-of-balance supply and demand in the 2020 monitor panel market similar to last year’s due to the 18.3% discrepancy between panel suppliers’ planned shipment of 170.1 million units in 2020 and the 143.8 million units shipped in 2019. However, Samsung Display’s decision to exit the LCD market early will alleviate the market’s oversupply situation.
For more information visit TrendForce
For more information visit TrendForce
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
REDCOM EMS expands certification for medical device manufacturing New York-based REDCOM EMS has secured ISO 13485:2016 certification, complementing the company’s existing ISO 9001:2015 and AS9100D certifications.
Ozark Integrated Circuits nabs U.S. Air Force grant Arkansas-based Ozark Integrated Circuits Inc., located in the Arkansas Research and Technology Park at the University of Arkansas, has received a USD 750,000 award from the U.S. Air Force.
Norwegian EMS adds employees to Polish unit The last couple of months Norautron has welcomed three new colleagues at its office in Sdunska Wola, Poland.
Daimler’s battery production in Kamenz gradually increases production Local battery production is described as an important success factor for Mercedes-Benz AG’s electric offensive and a key element to flexibly and efficiently meet the global demand for electrified vehicles.
Tepcomp invests in new additional production line Finnish EMS provider, Tepcomp Group, has made a significant investment at its production plant in Turku. The new surface mount technology production line will significantly improve the productivity and energy efficiency of the plant.
Valoe is on schedule with both production and expected deliveries Valoe says it will start manufacturing IBC test modules in Juva, Finland in June and cell deliveries from Lithuania to customers is scheduled to start according to plan.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.Load more news
- Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000
- COVID-19 highlights the gravity of the secondary market for SME
- Data Link Solutions to provide MIDS cabinet terminals to US Navy
- China falls far short of its "Made-in-China 2025" goal
- GlobalFoundries to implement ITAR at US manufacturing facility